Servicing Guide

The Servicing Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Servicing Guide in PDF format.

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What actions must the servicer complete when referring a balloon mortgage loan to a law firm for bankruptcy proceedings?

The following table lists actions to be completed by the servicer when referring a balloon mortgage loan to a law firm for bankruptcy proceedings.

The servicer must…
 

Determine whether the balloon maturity date will occur while the bankruptcy action is pending. This includes any repayment period under a confirmed reorganization plan.

 

Inform the law firm of the approaching balloon maturity date when it refers the case.

 

Contact the applicable mortgage insurer to confirm whether the bankruptcy proceedings will have any effect on the MI coverage if they continue beyond the balloon maturity date.

Note: This is particularly important in connection with a Chapter 13 bankruptcy since the confirmed reorganization plan may permit the mortgage debt to be paid over a five-year period.

For more information please see: E-2.3-05: Bankruptcies Involving Balloon Mortgage Loans.

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What must be notated in the servicer's bankruptcy tracking system once it is determined that a borrower has filed bankruptcy?

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Once we determine that the borrower has filed bankruptcy, are we required to check our records to determine whether a previous bankruptcy has been filed?

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What are the required timelines for servicer and attorney interaction related to bankruptcy proceedings?

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Does the proposed bankruptcy reorganization plan need to be reviewed prior to the bankruptcy confirmation hearing?

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What are the requirements for preparing and filing a proof of claim after a bankruptcy confirmation hearing?

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Is it a requirement to report and remit the principal and interest to Fannie Mae for MBS mortgage loans that are part of a bankruptcy?

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Once confirmation of a bankruptcy plan, what is timeframe that a regular servicing option mortgage loan may be purchased from an MBS pool?

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Once confirmation of a bankruptcy plan, what is the timeframe that a special servicing option mortgage loan may be purchased from an MBS pool?

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How does Fannie Mae define a case completion for a chapter 7 bankruptcy?

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What are the requirements for managing a chapter 7 bankruptcy for a current mortgage loan?

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What are the requirements for managing a chapter 7 bankruptcy for a delinquent mortgage loan?

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What should be done if a delinquent borrower decides to surrender their property after filing for a chapter 7 bankruptcy?

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What should be done if a delinquent borrower decides to retain possession of their property after filing for a chapter 7 bankruptcy?

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What actions must be completed once the automatic stay is terminated or dismissed for a Chapter 7 bankruptcy on a delinquent mortgage loan?

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What is the timeframe for completing a Chapter 7 bankruptcy case for a mortgage loan that was 60 or more days delinquent when the borrower filed bankruptcy?

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What are the requirements for properly managing and servicing a Chapter 11 Bankruptcy involving a delinquent mortgage loan?

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Upon confirmation of a Chapter 11 bankruptcy plan that modifies the original terms of the mortgage, what are the requirements for reporting and servicing the mortgage loan post-confirmation?

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What must the servicer do with servicing special option MBS mortgage loans after confirmation of a Chapter 11 reorganization plan?

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Upon confirmation of a Chapter 11 reorganization plan, what are the required actions once the automatic stay is terminated or the case is dismissed?

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