Servicing Guide

Published September 9, 2020

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Servicer Expense Reimbursement Job Aid (04/15/2020) Expense Types - Property Inspections, Property Preservation,Technology, Utilities, Vacant Property Registration, Valuations

Expense Types 

Property Inspections  

Recurring property inspections are required for all delinquent properties. The line items require a Service From and Service To date and require the total cost of all property inspections performed within the time frame.

For example: If three (3) exterior inspections were performed for $15.00 each between January and March of 2016, servicers should submit a claim using the Subcategory Exterior Property Inspections, with a Service From Date of 01/01/2016 and a Service To Date of 03/31/2016. The requested expense should have a quantity of three (3) for $15 equaling a total requested amount of $45.00.  

NOTE:    Quantity should always be a whole number.

The applicable interior/exterior property inspection line item(s) should be utilized for court-ordered inspections in the territory of Puerto Rico.

Category ID

Category

Subcategory ID

Subcategory

19

Property Services

8029

Exterior Property Inspection

19

Property Services

8030

Interior Property Inspection

In addition to the recurring (ongoing) property inspections, a one-time reimbursement will be allowed for Attorney Initiated Property Inspections for expedited foreclosure actions in the State of New Jersey, provided the inspection was conducted to confirm a property is vacant or abandoned. All of the following are or may be required for reimbursement of Attorney Initiated Property Inspections:

  • The expense was incurred on or after April 1, 2013.
  • The property is located in the State of New Jersey.
  • The invoice for the inspection must be provided to support the dollar amount.
  • A copy of the vacancy certification or a copy of the inspection report must be provided.
  • Explanation and/or documentation that the inspection was conducted in connection with an expedited foreclosure.

Category ID

Category

Subcategory ID

Subcategory

19

Property Services

8043

Attorney Initiated Property Inspection

NOTE: Court ordered inspections in the territory of Puerto Rico should be requested using the Recurring (Ongoing) Property Inspection line items.

Disaster Inspections are performed to verify the integrity of the property after a disaster event. Disaster inspections are only eligible for reimbursement consideration when:

  • The expense was incurred on or after August 25, 2017.
  • If the expense was incurred on a current mortgage loan, the expense must be submitted for reimbursement within one year of the invoice date.

NOTE: Claim filing deadlines still apply

  • The disaster inspection was performed using the property inspection report (Form 30) or the equivalent.
  • If performed on a current loan, the non-recoverable indicator should be flagged.

This property inspection expense should be submitted using the LoanSphere Invoicing line item below.

Category ID

Category

Subcategory ID

Subcategory

19

Property Services

8044

Disaster Inspection

Hazard Loss Repair Inspections are performed to verify the completion of repair work due to a hazard loss and are only eligible for reimbursement consideration when:

  • A comment is included if the hazard loss inspection is related to a loss from the 2017 hurricane season and the inspection was incurred on or after August 25, 2017.

  • All other hazard loss inspections are only reimbursable if incurred on or after December 13, 2017.

  • If the expense was incurred on a current mortgage loan, the expense must be submitted for reimbursement within one year of the invoice date.

NOTE: Claim filing deadlines still apply.

This property inspection expense should be submitted using the LoanSphere Invoicing line item below.

Specialty Inspections may include electrical inspections, plumbing inspections and/or system checks. Fannie Mae HomeTracker® approval is required for reimbursement of all Specialty Inspections.

This property inspection expense should be submitted using the LoanSphere Invoicing line item below.

Category ID

Category

Subcategory ID

Subcategory

19

Property Services

8021

Specialty Inspection

Property Preservation

Property Preservation expenses are paid up to the published Fannie Mae allowable. If the available allowable will not be sufficient, pre-approval for the total requested amount is required and must be submitted in HomeTracker. Claims submitted for property preservation expenses, such as cleaning, landscaping, and maintenance, must have a completion date that represents the date the expense was incurred. Recurring expenses should not be aggregated without using the Quantity field. If reimbursement is requested for recurring or frequent expenses within similar time frames, supporting invoices may be required to validate the expense.

Property preservation expenses, with the exception of property inspections, will not be reimbursed until the property is confirmed to be vacant. Servicers must populate the First Time Vacancy (FTV) Date field with the property’s vacancy date.

For additional guidelines regarding property preservation, refer to the Fannie Mae Servicing Guide E-3.2-12: Performing Property Preservation During Foreclosure Proceedings, as well as, Fannie Mae Servicing Guide F-1-05: Expense Reimbursement 

Technology Fees

Technology Fees include the BK and FC Electronic Invoice Submissions and the Process Management Technology Usage Fee. The BK and FC Electronic Invoice Submissions are reimbursable up to $10 for the life of the loan. The Process Management Technology Usage Fee is reimbursable up to $25 per each reported delinquency. Use the Non-Recoverable indicator when requesting reimbursement for any of these expenses.

Utilities    

There are three expense types that may be associated with the reimbursement of utilities.

Delinquent Utilities are the utilities that were not paid by the homeowner prior to vacating the property. These are expenses inherited by the servicer that need to be paid in order to prevent liens on the property and include the expenses incurred prior to foreclosure action and before the property is vacant. Unpaid utilities may eventually be added to the tax bill. The Tax Lien line item should only be used if the lien is related to unpaid taxes. Unpaid utilities should be requested to be reimbursed using the Delinquent Utility line item. 
This expense is paid up to the allowable outlined in the Property Preservation matrix, but documentation may also be requested to support the expense.

This type of expense should be submitted using the LoanSphere Invoicing line items below.

19

Property Services

8038

Delinquent Utilities – Electricity

19

Property Services

8039

Delinquent Utilities – Gas

19

Property Services

8040

Delinquent Utilities - Water

Monthly Utilities are the recurring utility expenses necessary to maintain the property during delinquency. These expenses are incurred after the property is vacant through the foreclosure month. This expense is paid up to the allowable outlined in the Property Preservation matrix, but documentation may also be requested to support the expense.

Utility expenses incurred more than 30 days after the foreclosure date are the responsibility of the REO vendor. If the REO vendor has not assumed the responsibility of these expenses, send the utility bills to servicing_solutions@fanniemae.com. The sales representative will request payment from the REO vendor.  

Servicers may be asked to reimburse pre-foreclosure expenses by title/closing department on claims submitted post- foreclosure. The title/closing department may request the servicer to pay a utility bill of an excessive amount. In these instances the servicer can be reimbursed, if the servicer submits the following two documentation requirements:

    • The title/closing department’s written request to the servicer requesting they pay the bill, AND
    • A copy of the original bill where the statement amount matches the amount paid by the servicer.         

This type of expense should be submitted using the LoanSphere Invoicing line items below.

19

Property Services

8031

Utilities – Electric

19

Property Services

8032

Utilities – Gas

19

Property Services

8033

Utilities - Water

Utility Transfer/Shut off expenses are incurred when cancelling a utility or transitioning the responsibility of this expense to the REO vendor. This expense is paid up to the allowable outlined in the Property Preservation matrix.   

This type of expense should be submitted using the LoanSphere Invoicing line item below.

19

Property Services

2079

Utility Transfer/Shut-off

Vacant Property Registration (VPR)

Vacant Property Registrations may require documentation to support the expense. Servicers may be required to pay a refundable bond to the city in addition to the registration. Since the bond is refundable by the city, Fannie Mae will not reimburse bond funds. 

VPR Administration Fees are required by some cities and municipalities to ensure an asset is maintained if the property is vacated by the owner. VPR Administration Fees are separate from VPR Bonds and are reimbursable. Documentation may be requested to support the expense.

Valuations

Valuation expenses include Appraisals, Automated Valuation Models (AVMs), and Broker Price Opinions (BPOs). Valuations for liquidations are ordered through Fannie Mae directly. See Announcement SVC-2013-06. Valuation expenses related to workout attempts, or court-ordered by a judge during foreclosure, are reimbursable on expense reimbursement claims submitted via LoanSphere. Since each valuation is valid for up to 90 days, valuation costs will only be reimbursed up to four (4) instances per calendar year. Documentation may be requested to support the expense.

For additional Expense Reimbursement information, see Servicer Expense Reimbursement Job Aid (03/22/2019) Expense Types click here 

 

 

 

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