Servicing Guide

Published June 10, 2020

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 information should the servicer include when submitting an over allowable for demolition/condemnation bids during property preservation services?

The servicer must provide the below information to Fannie Mae within fifteen (15) calendar days of the notification of the demolition or condemnation. Refer to Section 2: Technology and Photos within this Property Preservation Guide for bid submission guidance and include the following:

  • Provide two demolition bids and two repair bids simultaneously.
  • Ensure contractors are qualified/licensed/certified in demolition (typically not a maintenance contractor).
  • Ensure each bid submitted includes the full demolition scope on company letterhead with line by line estimate.
  • Provide the date the servicer first received each violation(s), demolition, or condemnation notice. Provide details of any fines/fees/liens that have been assessed or are accumulating and at what frequency (for example, $10,000 lien for the roof damage and fines accruing at $500 per day beginning January 1, 2017).
  • Include city code enforcement name, phone number, email address, and any other relevant contact information.
  • Provide legible copies of all demolition notices and violations, as well as the last three inspections and related photos.
  • Include any legal actions taken by servicer/servicer attorney and whether servicer's legal contact has reviewed the proposed demolition and determined it complies with all applicable law.
  • Provide hearing information including:
  1. Date of the hearing.
  2. The outcome of the hearing (e.g., Demolish Order has been approved. City is proceeding with the demo. The hearing has been rescheduled.)
  3. Date the city obtained the permits for the demolition.
  4. Date the demolition is scheduled to begin.
  • Provide all insurance information, including but not limited to:
  1. Date claim was filed.
  2. Status of the claim (e.g., adjuster has been to the property, waiting on adjuster's report; claim is approved, waiting on explanation of benefits (EOB) and adjuster's estimate.)
  3. Indicate if the claim is settled (either approved or denied), upload claim documents including letter of approval or denial, EOB and adjuster's estimate, if applicable.
  4. Indicate if the claim has been paid and the insurance/proof of loss check has been cashed, confirm insurance/proof of loss funds are in escrow. If funds are not in escrow, advise to the location of the funds and provide loss draft reports.
  5. Indicate if the claim has been paid and the insurance/proof of loss check has not been cashed, provide copy of the check and advise status of check.
  6. Indicate if the claim has been denied, upload claim documents validating denial reason and any disputes if appropriate or follow ups as necessary.

Note: Fannie Mae has made a Demolition Checklist, available in the Learning Center of HomeTracker to help servicers ensure all required items are provided in the bid submission.

For additional information please see: Property Preservation Matrix and Reference Guide, Section 8, Damaged Properties/Disaster Impacted Properties and Section 10, Code Violations.

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