Servicing Guide Announcement SVC-2012-05

Payment of Homeowners’ Association Dues and Condo Assessments

Fannie Mae requires servicers to protect the priority of the mortgage lien and to clear all liens for delinquent homeowners’ association (HOA) dues and condo assessments on properties acquired through foreclosure or deed-in-lieu of foreclosure.

Servicers must follow the policies outlined herein for all conventional mortgage loans held in Fannie Mae’s portfolio, those purchased for Fannie Mae’s portfolio but subsequently securitized into MBS pools (known as Pooled from Portfolio or PFP mortgage loans), those originally delivered as part of an MBS pool that have either a special or regular servicing option or a shared-risk MBS pool for which Fannie Mae or the servicer markets the acquired property, or other mortgage loans sold to Fannie Mae under a recourse or other credit enhancement arrangement.

Effective Date

Unless otherwise indicated, all policy changes specified in this Announcement are effective July 1, 2012; however, Fannie Mae encourages servicers to implement them as soon as possible. All other requirements provided in the associated sections of the Servicing Guide remain unchanged.

Full bulletin below…

Is somebody worried about priority here?

Hmmm….

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4closureFraud.org

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Servicing Guide Announcement SVC-2012-05