E-5-01: Requesting Reimbursement for Expenses (11/09/2016)

The servicer must request reimbursement for advances it has made for property taxes, insurance premiums, applicable HOA dues, and other out of pocket expenses by submitting a request for expense reimbursement.

Fannie Mae will allow the servicer to submit requests for reimbursement as soon as possible after incurring an expense. When multiple requests for reimbursement are submitted in connection with the same mortgage loan, the servicer must submit its final request for expense reimbursement for expenses incurred during the disposition process within 60 days of the applicable milestone.

For conventional mortgage loans, the applicable milestone is 60 days after

• the completion of a workout option (including a mortgage loan modification or short sale);

• a third-party sale is completed in accordance with E-3.5-02, Handling Third-Party Sales;

• the date the mortgage loan is reinstated or paid off (see E-5-05, Reimbursing Law Firms/Reimbursement of Uncollected Fees, Costs or Advances); or

• Fannie Mae disposes of a property acquired through foreclosure sale or a Fannie Mae Mortgage Release (deed-in-lieu of foreclosure).

For government mortgage loans, the applicable milestone is 60 days after the date the final FHA, VA, or RD claim proceeds are submitted to Fannie Mae.

The servicer must follow the procedures in F-1-05, Expense Reimbursement, for all reimbursement requests.