Fannie Mae has updated the allowable foreclosure time frames for the states of Florida, Maryland, Nevada and New York, according to a servicer announcement dated Aug. 31. The agency says it is monitoring all delinquent loans in its portfolio or securities pools and that it will begin notifying servicers of delays in processing delinquent loans.
Fannie Mae will assess compensatory fees as deemed necessary, the announcement states.
‘A compensatory fee not only compensates Fannie Mae for damages but also emphasizes the importance placed on a particular aspect of the servicer's performance,’ the announcement explains. ‘In some cases, a compensatory fee will relate to the action the servicer took, or failed to take, in handling a specific mortgage loan. At other times, the compensatory fee reflects the impact of the servicer's performance deficiencies on Fannie Mae's cashflow.’
Effective immediately, any foreclosure referral tied to properties in the four states must meet the following time frames:
- Florida – 185 days (includes an additional 35 days to allow for a mediation referral prior to commencement of foreclosure);
- Maryland – 90 days (extended to 120 days if a Preliminary Loss Mitigation Affidavit is required);
- Nevada – 150 days; and
- New York – 300 days for Upstate New York, 420 days for New York City and Long Island.
In a separate announcement, Fannie Mae says it will now require that servicers assign delinquent loans secured by properties in Florida to an attorney from Fannie Mae's Retained Attorney Network for mediation prior to the initiation of foreclosure proceedings.
SOURCE: Fannie Mae