Effective for foreclosure referrals on and after March 1, 2012:

In all circumstances in which an assignment of mortgage to the party in whose name the foreclosure will be conducted is required, servicers must ensure that, no later than the time of the foreclosure referral to an attorney (or trustee), the mortgage has been validly assigned (that is, it is legally effective and enforceable) to the party in whose name the foreclosure will be conducted. The execution of the assignment must be completed no later than the time of the foreclosure referral.

• If the property is located in a jurisdiction that recognizes the effectiveness of executed, but unrecorded, assignments, the foreclosure may be initiated prior to recordation of the assignment. In these cases, the assignment should be recorded as soon as possible, in compliance with the laws of the jurisdiction where the property is located.

• If the jurisdiction requires recordation of the assignment to the party in whose name the foreclosure will be conducted before proceeding with foreclosure, the assignment must be recorded before the foreclosure begins.

Fannie Mae requires servicers to institute a process to verify the status of the mortgagee of record at least as early as the 90th day of delinquency if necessary to enable them to ensure that the mortgage has been validly assigned to the party in whose name the foreclosure will be conducted no later than the time of referral. If the review of the status of the mortgagee of record indicates that the mortgage loan needs to be assigned out of the Mortgage Electronic Registration Systems, Inc. (MERS®) to either the servicer or Fannie Mae, that assignment should be undertaken as quickly as possible. If, as of the date of the foreclosure referral, the assignment of the mortgage has been executed but not recorded or sent for recording, the original must be included in the referral package sent to the attorney (or trustee). If applicable law requires that there be an assignment of mortgage to the servicer or Fannie Mae at an earlier point in time, for example, prior to the sending of a notice of default or right to cure, servicers must continue to comply with applicable law.

Full Announcement below…

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4closureFraud.org

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Fannie Mae Servicing Guide Announcement SVC-2011-22