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New Rules for Fannie Mae

June 8, 2011

This week Fannie Mae revamped its rules for delinquent loans and now they are requiring mortgage servicers to act quickly when helping home owners that are in trouble and are facing foreclosure. Their goal is to create a “strong customer service relationship” and try to understand exactly why payments are missing as well as give homeowners ideas as to how to prevent foreclosure. The general idea is to get in touch with them and give them options other than what often seems to be the only choice. Another aspect to the new rules is that servicers MUST contact the homeowners verbally AND in writing within 120 days of the loan becoming delinquent. It also requires that the servicers try to complete a loan modification to keep the borrower in their home and give them more time to resolve any issues. If foreclosure is unavoidable, servicers will need to follow a clear timeline and must begin the foreclosure process once a loan has been delinquent for more than 120 days. Servicers also must make it clear when a property in the foreclosure process will be sold. These adjustments to their policies will hopefully be implemented and bring about positive results. It seems that Fannie Mae has identified the larger issues and is taking the appropriate measures to ensure the best possible outcome for their borrowers. Not to mention getting to know their clients will make the process much less dehumanized, so the servicers may try to fight on the borrowers behalf just that much harder.

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