Servicing Guide

Published December 08, 2021

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E-4.5-01: Filing MI Claims for Conventional Mortgage Loans or for Other Mortgage Loans for which Fannie Mae Bears the Risk of Loss (07/14/2021)

Introduction

This topic contains the following:


Overview

This topic describes the process for filing MI claims for the following mortgage loans:

  • conventional first lien mortgage loans insured by mortgage insurers not participating in the MI Direct® MI claims process, and
  • mortgage loans that are not conventional first lien mortgage loans for which Fannie Mae bears the risk of loss.

Prior to filing an MI claim for such mortgage loans, the servicer must review the MI Claims Portal Participants Exhibit to

  • determine if the mortgage insurer is participating in the MICP; and
  • if so, identify the date on which the mortgage insurer’s MICP participation is effective (based on the liquidation date of the mortgage loan).

If…

Then the servicer must…

the mortgage loan is insured by a mortgage insurer participating in MICP and its liquidation date is on or after the mortgage insurer’s applicable MICP participation effective date

follow the requirements in MI Claims Filed by Fannie Mae.

the mortgage insurer is not an MICP participant, or if the mortgage insurer is an MICP participant but the liquidation date of the mortgage loan is before the mortgage insurer’s applicable MICP participation effective date

follow the requirements in MI Claims Filed by Servicers.

The servicer must provide to Fannie Mae or the mortgage insurer, as applicable, all information and data necessary to timely and accurately file the MI claim, including loan liquidation and MI coverage information as required in  C-4.3-01, Servicer Responsibilities Related to Investor Reporting and  E-4.1-01, Notifying Fannie Mae of an Acquired Property. Once the MI claim is filed, whether by the servicer or Fannie Mae, the servicer has different responsibilities depending on how the property was liquidated. The servicer must follow the procedures in  F-1-06, Filing an MI Claim for a Liquidated Mortgage Loan or Acquired Property.

 


MI Claims Filed by Fannie Mae

Fannie Mae will file all related primary MI claims for applicable liquidated mortgage loans when the mortgage loan is

  • insured by an MICP participant, and
  • has a liquidation date on or after the mortgage insurer’s applicable MICP participation effective date.

The following table describes the servicer’s responsibilities related to MI claims for these mortgage loans.

The servicer must...…

 

Monitor Fannie Mae systems, including MICP, to ensure such systems accurately reflect the identity of the mortgage insurer, the required claim filing deadline, and other information necessary to allow Fannie Mae to file a timely MI claim.

 

Inform Fannie Mae if MICP does not contain accurate information.

 

Upload to MICP all claim documents required by the MI master policy, and any subsequent or supplemental documents requested by the mortgage insurer or Fannie Mae, within the timeframes required by the MI master policy, the mortgage insurer, or Fannie Mae. See  F-1-06, Filing an MI Claim for a Liquidated Mortgage Loan or Acquired Propertyfor additional requirements.

 

Generally, after completing its reporting responsibilities and all other responsibilities described herein, the servicer is not required to take further action unless it is contacted by Fannie Mae, Fannie Mae’s eviction attorney, or the mortgage insurer to provide additional information or documentation. If the servicer fails to provide requested information or documentation, it must indemnify and hold Fannie Mae harmless against all Fannie Mae losses caused by its inaction, in accordance with  A1-3-02, Fannie Mae-Initiated Repurchases, Indemnifications, Make Whole Payment Requests and Deferred Payment Obligations and Selling Guide, A2-1-03, Indemnifications for Losses.

The servicer must reimburse Fannie Mae if:

  • Fannie Mae suffers any losses due to the servicer’s failure to supply a mortgage insurer or Fannie Mae with timely and accurate documents or information, as required or requested by the mortgage insurer or Fannie Mae;
  • Fannie Mae’s claim is denied, delayed, or curtailed due to servicer failure to timely and accurately report any of the information required in  C-4.3-01, Servicer Responsibilities Related to Investor Reporting and  E-4.1-01, Notifying Fannie Mae of an Acquired Property;
  • Fannie Mae suffers any loss due to the servicer’s failure to timely and accurately submit a request for expense reimbursement as required in  E-5-01, Requesting Reimbursement for Expenses;
  • expenses in the claim are disallowed, curtailed, or delayed under the MI master policy;
  • the amount of interest payable is cut off solely because the servicer did not follow Fannie Mae or the mortgage insurer’s required procedures for conveyance; or
  • any payments the servicers owes the mortgage insurer or guarantor (for premiums, surcharges, etc.) are netted against the benefits paid to Fannie Mae.
 


MI Claims Filed by the Servicer

With the exception of mortgage loans insured by RMIC, the servicer must file all primary MI claims for applicable liquidated mortgage loans if

  • the mortgage insurer is not participating in the MICP; or
  • the mortgage insurer is an MICP Participant, but the mortgage loan liquidation date is before the mortgage insurer’s applicable MICP participation effective date.

The MI claim must be filed so that the claims proceeds are sent directly to Fannie Mae.

The servicer must reimburse Fannie Mae if:

  • Fannie Mae suffers any losses in connection with any defect in the claim filing process, including but not limited to the failure to provide required or requested information or the failure to file a claim in a timely manner;
  • expenses in the claim are disallowed, curtailed, or delayed under the MI master policy;
  • the amount of interest payable is cut off solely because the servicer did not follow the Fannie Mae or the mortgage insurer’s required procedures for conveyance or claim filing; or
  • any payments the servicer owes the mortgage insurer or guarantor (for premiums, surcharges, etc.) are netted against the benefits paid to Fannie Mae.

Generally, after completing its responsibilities, the servicer is not required to take any further action unless it is contacted by Fannie Mae's eviction attorney, or the mortgage insurer, and asked to provide certain information or documentation. If the servicer fails to provide any requested information or documentation in a timely manner, it must indemnify and hold Fannie Mae harmless against all Fannie Mae losses caused by its inaction. The servicer must follow the procedures in Ensuring Timely Settlement of the MI Claim for a Conventional Mortgage Loan in  F-1-06, Filing an MI Claim for a Liquidated Mortgage Loan or Acquired Property.

The following table provides references to Announcements that are related to this topic.

Announcements Issue Date
Announcement SVC-2021-04 July 14, 2021
Announcement SVC-2016–04 May 11, 2016

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