The maximum attorney fees that Fannie Mae allows for legal proceedings related to foreclosures appear in the Allowable Foreclosure Attorney Fees Exhibit. Generally, Fannie Mae will not reimburse the servicer for any attorney fees that exceed or are not included within Fannie Mae's maximum allowable foreclosure fee schedule—unless the law firm obtains the appropriate excess fee approval from Fannie Mae's SF CPM division (see F-4-03, List of Contacts). The servicer must also ensure allowable foreclosure fees comply with the milestone invoicing requirements set forth in E-5-05, Reimbursing Law Firms/Reimbursement of Uncollected Fees, Costs or Advances. The servicer may access additional resources on managing default-related legal services, including the process for the law firm to request Fannie Mae approval for certain excess legal expenses, on Fannie Mae’s website.
The allowable fee applies for the life of the default and covers services necessary to complete a routine foreclosure action in the jurisdiction. In the event that a default is cured, such as by a completed loan modification or reinstatement, and the loan subsequently becomes delinquent again, a new allowable foreclosure fee applies without the need for excess fee approval when the servicer must initiate new foreclosure proceedings.
For more information please see: E-5-04, Allowable Foreclosure Fees