Non-routine litigation must be reported to Fannie Mae’s Legal department using the Non-Routine Litigation Form (Form 20) within two business days of the servicer receiving notice of the litigation, except with respect to the following three categories of loan-level challenges:
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a challenge to the standing of the servicer to conduct foreclosures or bankruptcies that, if successful, could create negative legal precedent with an impact beyond the immediate case;
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a challenge to the methods by which MERS does business or its ability to act as nominee under a mortgage; or
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any claim invoking HAMP as a basis to challenge a foreclosure.
With respect to these three categories of loan-level challenges, it is not necessary for the servicer to notify Fannie Mae until
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the borrower seeks summary judgment on such a challenge,
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briefing is required in response to such a challenge, or
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the issue is expected to be raised at a scheduled trial.
Recent Related Announcements
The table below provides references to recently issued Announcements that are related to this topic.
Announcements | Issue Date |
Announcement SVC-2023-03 | May 10, 2023 |