Fannie Mae will generally reimburse the servicer for excess title and publication costs if they are necessary due to unexpected events, unless they are due to
a breach or alleged breach of selling warranties or representations or origination or selling activities,
the lender’s failure or alleged failure to satisfy its duties and responsibilities as a servicer,
actual or alleged error or lack of diligence on the part of a law firm retained by the servicer, or
a servicer initiated file transfer to a new law firm.
The servicer must reimburse the law firm in a timely manner for the additional legal costs associated with the services provided in the above instances unless the excess title or publication costs are due to actual or alleged error or lack of diligence from the law firm retained by the servicer.
The servicer may access additional resources on managing default-related legal services, including title and foreclosure publication costs and the process for the law firm to request Fannie Mae approval for certain excess legal expenses, on Fannie Mae’s website.
For more information please see: E-5-07, Other Reimbursable Default-Related Legal Expenses