Servicing Guide

Published October 14, 2020

For best results, pose your search like a question.

Guide Resources

For a comprehensive list of resources such as forms, announcements, lender letters, notices and more.

Visit Selling and Servicing Guide Communications and Forms

Customers Recommend Ask Poli

AskPoli

If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

Launch Ask Poli  

Download PDF Guide

You can also download the printable ~800 page PDF, which include links.

Download Now

Servicer Expense Reimbursement Job Aid (10/01/2020) General Information

Servicer Expense Reimbursement Job Aid     

Effective October 1, 2020

 

To simplify the communication with servicers, Fannie Mae has updated the Servicer Expense Reimbursement Job Aid, providing additional guidance on completing requests for expense reimbursements. To the extent this job aid may conflict with the Guides, the terms of the Guides will govern. 

 

This Servicer Expense Reimbursement Job Aid supplements the Servicing Guide. Servicers remain responsible for following the Selling and Servicing Guides, Servicing Guide Procedures, Announcements, Lender Letters, and Delegations of Authority, collectively, the “Guides.”  

 

N O T E : The information contained in this document is not applicable to expenses incurred for Reverse Mortgages

 

General Information

Servicer Expense Process Flow

When to Submit an Expense Reimbursement Claim

Where to Submit an Expense Reimbursement Claim

Fannie Mae Expense Reimbursement Reviews

Payment Information

 

General Information

 

General information about the submission process for servicer expense reimbursement claims is provided in the section below.

 

Servicer Expense Process Flow

 

The flowchart below represents the process flow for servicer expense claims submitted in Black Knight, Inc. (BKI) LoanSphere Invoicing™.

 

 

When to Submit an Expense Reimbursement Claim

Servicers must be familiar with Fannie Mae’s policies found in the Guides (Fannie Mae Servicing Guide E-5- 01: Requesting Reimbursement for Expenses) before submitting requests for expense reimbursement.

Initial and Supplemental Claims

Fannie Mae will allow the servicer to submit requests for expense reimbursement as soon as the expense is incurred and does not limit the number of supplemental claims.

Final Claim

For conventional mortgage loans, all expense reimbursement claims must be filed within 60 days of the applicable milestone:

For government mortgage loans, the applicable milestone is 60 days after the date the final FHA, VA or RD claim proceeds are submitted to Fannie Mae.

 

Servicers are responsible for monitoring the status of properties using the web-based application called the Asset Management Network (AMN) system for each milestone and ensuring all claims are submitted timely. The Asset Management Network (AMN) system is a web-based application which allows servicers to monitor the status of properties. The REO Sale Date or Disposition Event Date is the date a property was sold via a direct sale, third party sale or short sale.

 

NOTE: All claims submitted more than 60 days after the above described milestones may be denied for late claim filing.  

 

Where to Submit an Expense Reimbursement Claim

LoanSphere Invoicing is a web-based expense reimbursement system that allows servicers to consolidate invoice processing and expense reimbursement claims into one application, creating a more seamless expense reimbursement experience. It is also the system Fannie Mae uses to decision claims.

 

A servicer may request reimbursement for advances made on behalf of Fannie Mae by submitting a request for reimbursement in the LoanSphere Invoicing system. LoanSphere Invoicing validates claims against specific loan and expense data and will generate exceptions for Fannie Mae processors to review. The validation process only runs between 8 AM ET and 10 PM ET. Claims submitted outside of these time frames will have a claim tag of Pending Validation.

 

Claim reimbursement submissions are limited to 100 line items per claim, for both manual and bulk submissions. When a submitter attempts to add a line item and the limit has already been reached, the submitter will see an error message and the line item will not be created. If a claim has reached the limit and is in a hold or submitted status, the "Add a line item" option will not be available. For bulk submissions, if the file exceeds the limit, the claim will not process and appear as rejected on the import process report. 

 

Servicers have the ability to copy claim and loan information for a previously submitted claim that has been Denied, Submitter Voided, Void, or Paid with Curtailed Line Items. Other information, such as chronology and history, will be displayed as a new claim.  

 

NOTE: Claims are only allowed to be copied once. Detailed information can be found in the LoanSphere Update - Copy and Resubmit Claims Procedure Document.

 

Fannie Mae also has the ability to copy and resubmit claims escalated via the Inquiry Response Tool (IRT) and resubmit claims on the servicer’s behalf. No changes or modifications will be made to claims copied by Fannie Mae.

 

For more details on the LoanSphere Invoicing system, reference the online Help section within the application (LoanSphere Home Page > Help > Claims). There are other support modules within the Help section that may also be beneficial to review.

Reference the Expense Reimbursement Line Item Search (LIST) for a list of expense categories and subcategories available for a claim in LoanSphere Invoicing.

Fannie Mae Expense Reimbursement Reviews

Fannie Mae has updated the methodology used for reviewing expenses incurred during loss mitigation and foreclosure activities. Expenses may be reviewed prior to the decisioning of a claim (pre-payment review), or after the decisioning of the claim (post-payment review). A servicer is required to maintain all invoices, and provide invoices at any point if requested by Fannie Mae as outlined in Fannie Mae Servicing Guide F-1-05: Expense Rembursement.

Pre-Payment Review

Claims not eligible for automatic approval are selected for a pre-payment review; however, not all pre- payment reviews require supporting documentation. If Fannie Mae requires additional information, the expense will be marked for review and the claim will be changed to Pending Submitter Review status.

If the claim is returned without the requested information, the expense will be denied or curtailed.

Pending Submitter Review (PSR) Status

Pending Submitter Review (PSR) is a status within LoanSphere Invoicing used to request additional information from the servicer when necessary. Claims in PSR must follow the guidelines below:

  • Servicers can only adjust a line item if it has been marked for review.
  • Claims in this status are only editable by servicers.
  • Servicers are expected to review this queue regularly.

Servicers are expected to provide the requested information and return the claim within 30 days of when the claim was put into PSR.   

  • Claims remaining in PSR for 60 days that are not locked and do not have a Pending Validation or a Failed to Validate tag, will be auto-denied. 
  • When the 60-day threshold is reached, all line items set to pay on the claim will be changed to zero. The denial comment and reason will be “Denied - Failure to respond within Fannie Mae Guide timelines.”   

Supporting Documentation for Pre-Payment Review Requests

Fannie Mae will request supporting documentation when expenses are selected for a pre-payment review. The expenses that require an additional review against documentation will be clearly indicated in the Investor Comments. Below are commonly reviewed expenses and examples of Fannie Mae’s preferred documentation:

Homeowners Association/Condo Association Assessments (COA/HOA) Assessments, Dues and/or Other COA/HOA Related Expenses

Include one of the following:

  • Detailed COA/HOA invoice
  • COA/HOA payment coupon or itemized statement for late fees showing time period
  • Ledger statement (with payment history)
  • Invoice from attorney or property management firm
  • Copy of recorded lien and release of lien

Legal Fees and Costs

Attorneys’ Invoices

Liens

Recorded lien

Mortgage Insurance (MI)

Mortgage Insurance Certificate

Municipal Violations

Violation from municipality or third-party vendor

Property Insurance (Flood, Hazard, Wind)

Supporting documentation is considered sufficient when it comes from the insurance company and contains the following data:

  • Insurance Company Name
  • Property Address or servicer loan number
  • Coverage Period
  • Premium Amount

Examples include, but are not limited to, the following:

  • Declaration pages
  • Evidence of Insurance
  • Notice of Insurance
  • EDI (Electronic Data Interchange)

Recurring (Ongoing) Property Inspections

Invoice from property inspection vendor

Sheriff Fees and Costs

Itemized Sheriff Cost Sheet

If the servicer cannot provide a Sheriff’s Cost Sheet, a comment on the claim is needed. The servicer must provide alternate documentation as referenced in Servicing Notice announcement https://www.fanniemae.com/content/announcement/ntce010913.pdf

Taxes, Tax Penalties and Interest

Supporting documentation is considered sufficient when it contains the following data:

  • Tax amount itemized to list tax penalties and interest, if applicable.
  • Type of tax or municipality (city, county, school, etc.).
  • Due date, service dates or coverage dates.
  • If applicable, the date the tax discount expires and/or the tax payment date.

NOTE: A screen print from the servicer’s system is not acceptable supporting documentation.

Utility Bills

Invoices showing utility company name, dates of service, address of property.

Vacant Property Registration

Vacant Property Registration on official form from municipality or third-party invoice showing property address.

Post-Payment Review

All claims are eligible for a post-payment review. If additional information is necessary to complete the review, Fannie Mae will request additional information or supporting documentation through the Post-Payment Documentation Request Portal. If supporting documentation cannot be provided, the servicer may be required to reimburse Fannie Mae for the amount that was paid.

Post Payment Documentation Request Portal

Servicers will receive an email request from the Post-Payment Documentation Request Portal.

For the Post Payment Documentation Request Portal Click Here

The request should be acknowledged within 10 days of receiving the request for documentation. Detailed information about the Post-Payment Documentation Request Portal can be found on the Fannie Mae Servicer Expense Reimbursement site: https://www.fanniemae.com/content/job_aid/servicer-expense-reimbursement-post-payment-documentation-request.pdf

If you have any questions or concerns about the post-payment review process, send an email to: disbursements_research@fanniemae.com

Payment Information

Automated Clearinghouse (ACH) is the primary method by which expense reimbursement funds are disbursed.

To confirm that a check or an ACH notification has been sent, access the AMN system to view the check number, check amount, and the date it was issued. 
If the check or ACH payment has not been received, send an email to the Fannie Mae Accounting Department (FannieMae_REO_Disbursements@fanniemae.com) and include the following information:

  • Amount of check
  • Check date
  • Check number (ACH disbursements begin with a 6)
  • Fannie Mae 10-digit loan number
  • Purpose of inquiry

If the bank account information or ACH email address requires an update, send an email to the Fannie Mae REO Vendor Department (REO_vendors@fanniemae.com) and include the following information: 

  • ACH# (should start with a 6)
  • Additional information as appropriate
  • Vendor ID number

 


Have You Tried Ask Poli?

Poli knows. Just ask.

Ask Poli features exclusive Q&As and
more—plus official Selling & Servicing
Guide
content.

Try Ask Poli

Related Articles


AskPoli

Customers Recommend Ask Poli

If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

Guide Resources

For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more.

Visit Selling and Servicing Guide Communications and Forms

X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.