Fannie Mae: Excess Fee for Resuming Pending Foreclosure Actions

Fannie Mae: Excess Fee for Resuming Pending Foreclosure Actions

Investor Update
July 7, 2021

Source: Fannie Mae

For those mortgage loans with pending foreclosure actions as of August 1, 2021, affected by the foreclosure moratoriums related to COVID-19 in the jurisdictions listed below, Fannie Mae authorizes and will reimburse servicers a one-time excess legal fee of $275 for the additional legal work required to resume pending foreclosure actions when it is necessary to do so upon the lifting of applicable federal and state moratoria. Law firms should request excess fee approval for each impacted mortgage loan pursuant to the process set forth in the applicable AAA Matrix utilizing the Non-Standard Other Legal IPA Category and invoice the $275 excess fee upon notification from the servicer to proceed with the pending matter. This excess fee must be coded as non-recoverable from the borrower. This excess fee is applicable in the following jurisdictions:

Connecticut, Delaware, District of Columbia, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, South Carolina, South Dakota, Vermont, Virgin Islands, and Wisconsin.

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