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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Can a full reinstatement of a first or second lien mortgage loan be accepted after the foreclosure proceedings have begun?

The servicer must accept a full reinstatement of a first lien mortgage loan even if foreclosure proceedings have already begun. This is also true for a second lien mortgage loan as long as the first lien mortgage loan is not delinquent or provided the first lien mortgage loan servicer has agreed to arrangements for curing the delinquency.

The following table provides the definition of a full reinstatement.

A full reinstatement must include payment of…
 

All delinquent mortgage loan payments, bearing interest at the rate applicable on the date they became due.

 

Late charges on the delinquent payments.

 

Any funds the servicer advanced for protection of the security or to pay taxes, insurance premiums, etc.

 

The costs of performing the preforeclosure property inspection required by Fannie Mae, FHA, or the VA (as applicable), and if permitted under the terms of the security instrument.

 

All expenses, including attorney fees; that were actually incurred in connection with the foreclosure proceedings that are permitted under the terms of the note, security instrument, and applicable law.

See also E-5-05, Reimbursing Law Firms/Reimbursement of Uncollected Fees, Costs or Advances for additional information.

For application of funds from an HFA-HHF reinstatement program, see D2-3.1-05, Interacting with Housing Finance Agencies and Hardest Hit Fund Programs

For more information please see: E-3.2-08: Processing Reinstatements During Foreclosure.

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