E-4.1-01, Notifying Fannie Mae of an Acquired Property (05/10/2023)
- Overview
- Timing and Confirmation of the REOgram
- Review and Confirmation of the REOgram
- Monitoring the Status of Acquired Properties
Overview
Once the foreclosure sale is held and the property acquired, or a Mortgage Release has been executed, the servicer must notify Fannie Mae about the property acquisition.
Two different notifications are required:
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the notice via confirmation (REOgram) that Fannie Mae has an acquired property to dispose of, and
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the notice of the removal status code that is part of the regular investor reporting process.
See Reporting a Mortgage Release to Fannie Mae in Investor Reporting Manual for additional information.
, as well as Reporting a Mortgage Loan Liquidation to Fannie Mae in Fannie Mae’sUnless otherwise directed by Fannie Mae, a special servicing option MBS mortgage loan that has been referred to foreclosure or a reported Mortgage Release will be removed from the MBS pool (see
).Timing and Confirmation of the REOgram
Within one business day upon receipt of the daily REOgram notification from Property 360 for any REO property acquired through foreclosure sale or the servicer accepts the executed Mortgage Release, the servicer must review and confirm the REOgram notification in Property 360 for the following mortgage loans:
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all conventional mortgage loans; and
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any special servicing option RD mortgage loans, even though Fannie Mae may not gain clear title to the property until after expiration of any redemption period.
The servicer must review and resolve any exceptions from the daily notification in Property 360 no later than three business days, if applicable.
Note: In applicable jurisdictions, when the foreclosure is completed through a process under which title vests in Fannie Mae (or the servicer in appropriate cases) by operation of court order and there is no foreclosure sale, the servicer must review and confirm the REOgram within one business day of when the court’s order is entered on the docket.
Fannie Mae may charge the servicer a compensatory fee for each day it is late in confirmation of the REOgram unless it determines there is a reasonable explanation for the delay as described in
. Fannie Mae also may exercise any other available and appropriate remedies for late notifications.Review and Confirmation of the REOgram
The servicer must review and confirm the REOgram utilizing Property 360 (see
in accordance with Timing of the REOgram in .With respect to all resale restrictions, the servicer represents and warrants that upon REOgram confirmation and transfer of the property to Fannie Mae, all required notices have been given in an appropriate manner, and that the foreclosure or Mortgage Release complies with the requirements of the applicable resale restriction agreement or shared equity transaction agreement. With respect to resale restrictions that do not survive foreclosure or acceptance of a Mortgage Release, or the expiration of any applicable redemption period, the servicer represents and warrants that all actions necessary to terminate the resale restrictions have been taken.
Monitoring the Status of Acquired Properties
After the servicer reviews and confirms an REOgram to Fannie Mae, it must monitor the property's status and ensure that it files its request for expense reimbursement in a timely manner, in accordance with the requirements and timeframes set forth in
.The table below provides references to recently issued Announcements that are related to this topic.
Announcements | Issue Date |
---|---|
May 10, 2023 | |
Announcement SVC-2021-04 | July 14, 2021 |
Announcement SVC-2021-01 | January 20, 2021 |
Announcement SVC-2019-02 | April 10, 2019 |