Frequently Asked Questions
General Submission Q&As
Q1. What are the expected service levels for claim processing as described in the Servicer Expense Reimbursement Job Aid?
Generally, claims are processed within 30 days of submission.
Q2. How does adding or changing something on a claim after I submit it in LoanSphere Invoicing affect how long it will take to pay the claim as described in the Servicer Expense Reimbursement Job Aid?
Claims are processed based on claim age, with the oldest claims worked first. The age of a claim is determined by the submission date. Updating a claim after it has been submitted changes and re-sets the submission date. Continuing to make updates to a claim may cause the claim to exceed the submission deadline, which may result in a claim being denied for late submission.
Q3. What if circumstances beyond my control caused a late claim submission?
Escalate using the Inquiry Response Tool (IRT).
Q4. How long should I expect to wait for a servicer expense reimbursement inquiry response?
Generally, a response should be received within 5 business days of submission.
Q5. When should I expect to get funds?
If receiving checks, you should expect to receive funds within 10 days of the claim showing a “Paid” status in the LoanSphere Invoicing System.
If receiving ACH, you should expect to receive funds within 3 business days of the claim showing a “Paid” status in the LoanSphere Invoicing System.
Q6. What if we get money that is not ours?
Contact the Fannie Mae accounting team by emailing: firstname.lastname@example.org for further instructions
Q7. What is Fannie Mae’s expectation for reporting delinquency status on properties?
The servicer must report delinquency history by the 2nd business day of every month for each loan that is 30+ days delinquent as of the last day of the preceding month, or if any action was taken to cure the delinquency during the preceding month even if the loan is less than 30 days delinquent. See Servicing Guide Part F-1-22: Reporting a Delinquent Mortgage Loan via Fannie Mae's Servicing Solutions System.
Q8. I have submitted a claim for an FHA, VA, or Rural housing loan and received notification there were no reimbursement instructions for the processing team or from the reconciliation team. What does this mean and what are my next steps?
In order to process a claim for reimbursement, the Expense Reimbursement team needs feedback from the reconciliation teams prior to reimbursing expenses for FHA, VA, and Rural Housing loans. Even though sales proceeds may have been received, there are no comments providing 571 claim reimbursement instructions.
For FHA, VA or Rural Housing inquiries, please email: email@example.com
Q9. How can I ensure that Fannie Mae knows a loan has been in bankruptcy if I’m not specifically requesting reimbursement of bankruptcy fees?
If the loan has ever been in bankruptcy, the servicer should include a comment on the claim with the case number, chapter type, and bankruptcy filed date.
Q10. How are utility liens following a foreclosure action handled?
They are reviewed on a case-by-case basis. Submit an inquiry through IRT and include a copy of required documentation.
Q11. Is the servicer responsible for water/sewer charges during the foreclosure process?
Refer to the Servicing Guide for servicer obligations: Fannie Mae Servicing Guide Part F-1-05: Expense Reimbursement.
Q12. How do I obtain approval for property preservation expenses exceeding allowable tolerances?
The servicer must follow the guidelines set forth by the Property Preservation group for reimbursement of amounts over tolerance and provide the date the work was completed.
When reimbursement for preservation work is requested, verify the amounts requested on the Property Maintenance and Management: Property Preservation Matrix and Reference Guide based on the date the work was completed.
All preservation work is expected to be completed within the allowable tolerances. When work cannot be completed within the allowable tolerances a bid must be submitted via HomeTracker® with a detailed description, reason for the bid request, and photos to support the bid. Approval must be obtained for all bids over the allowable tolerances prior to initiating work.
Q13. How do I get reimbursed for expenses related to Bankruptcy Cramdowns?
Once the cramdown has been approved by firstname.lastname@example.org, expenses are reimbursed like any other expenses.
Q14. Are Service member Civil Relief Act (SCRA)/Military Indulgence expenses reimbursable?
SCRA/Military Indulgence expenses are not individually reimbursable; those expenses are included as part of the overall amount of foreclosure allowable attorney fees.
Q15. What expenses should always be itemized? What expenses can be aggregated?
Landscaping, Taxes, Insurance, and Attorney’s fees and costs should always be itemized.
When a date range can be provided, the quantity field may be used to aggregate recurring monthly expenses that are always the same amount (examples: COA/HOA Dues, Recurring Property Inspections). The quantity field may also be used to aggregate expenses if the same expense is incurred on the same day for the same expense type
(examples: Capping Wires, Cleaning – Toilets). Quantity should always be a whole number; do not use decimals.
Q16. How do I get reimbursement for expenses related to a payment deferral?
The servicer must pay any necessary actual out-of-pocket expenses in compliance with the Servicing Guide, associated with the execution of a payment deferral. We will reimburse the servicer for allowable out-of-pocket expenses in accordance with Fannie Mae Servicing Guide F-1-05: Expense Reimbursement; however, servicers will not be automatically reimbursed for these expenses upon completion. The servicer must submit a request for reimbursement (including of advanced expenses included in the non-interest bearing balance), within 60 days of the completion of the payment deferral.
Please review Lender Letters (LL-2020-05), (LL-2020-07) and (LL-2020-11) for additional payment deferral information.
Q17. How do I activate my seller/servicer ID (SSID) in LoanSphere Invoicing for claims submissions?
The following steps should be followed to activate an SSID:
a. Contact BKI (904-854-5462) for information to activate an SSID.
b. Complete instructions provided by BKI.
Q18. Can adjustments be made to a decisioned claim and then resubmitted?
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.
Q19. How many different expenses can I submit for COA/HOA expenses?
LoanSphere Invoicing allows three (3) separate line item entries for COA/HOA expenses. As long as the service dates are sequential for multiple expenses, servicers can combine expenses using the same line item.
Q20. How can I access HomeTracker® to comply with guidelines regarding insurance cancellation after a property is foreclosed?
Effective February 1, 2020, the servicer must cancel any property insurance policy and flood insurance policy, if applicable, within 14 days of the foreclosure sale or the acceptance of an executed Mortgage Release™, regardless of whether there is an applicable waiting period, such as a redemption or court confirmation or ratification. Refer to Servicing Guide Announcement SVC-2019-07. For properties foreclosed prior to February 2020, policies must be cancelled within 14 days after the property appears on the Vacancy Report in HomeTracker®.
Q21. I have questions about my post-payment review. How do I escalate?
Contact the Quality Assurance and Measurement team at: email@example.com.