Form 571 Reference Guide - MOTECHS, · PDF fileBids and Write-Offs . All reduced bids and low...
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Form 571 Reference Guide November 2010 © 2009 Fannie Mae 11.5.2010
Transcript of Form 571 Reference Guide - MOTECHS, · PDF fileBids and Write-Offs . All reduced bids and low...
Form 571 Reference Guide
November 2010
© 2009 Fannie Mae 11.5.2010
Contents
Form 571 Reference Guide...................................................................................................................1
General Information ..............................................................................................................................4
571 Process Flow .................................................................................................................................6
Loan Tags .............................................................................................................................................7
Form 571 Line Item Instructions............................................................................................................8
A. Attorney Fees................................................................................................................................8 B. Foreclosure Costs and Expenses ...............................................................................................14 Expense Classification ....................................................................................................................15 C. Taxes ..........................................................................................................................................19 Tax Summary ..................................................................................................................................20 D. Owners Association Dues and Leasehold Payments .................................................................26 E. Loss Mitigation Workout Fee.......................................................................................................26 F. Other Fees and Charges.............................................................................................................27 G. Property Preservation Expenses ................................................................................................27 H. Deductible Items .........................................................................................................................32 I. Insurance......................................................................................................................................33 J. Utility Payments...........................................................................................................................34 K. Appraisal Costs...........................................................................................................................35 L. Broker’s Price Opinion................................................................................................................35 M. Property Inspection Fees............................................................................................................35
Viewing Forms ....................................................................................................................................36
Following Up on Checks .....................................................................................................................37
Frequently Asked Questions (FAQs) ..................................................................................................38
Announcement 08-19..........................................................................................................................44
Property Maintenance and Management ............................................................................................44
© 2009 Fannie Mae 11.5.2010 2
Dear Valued Servicer: In an ongoing effort to improve the communication between Fannie Mae and the servicing community, we are happy to provide our revised Form 571 Reference Guide. We have taken the 571 process and provided a detailed explanation for each step in the process. The information in the Form 571 Reference Guide is designed to answer the most frequently asked questions, as well as mitigate rejections and/or curtailments of your claims. Please note that the Fannie Mae Servicing Guide provides all of the Fannie Mae policies. This reference guide does not supersede or replace the policies in the Fannie Mae Servicing Guide. Moreover, the information in this guide is subject to change, so continue to update your records as that information changes. Recently, the Fannie Mae 571 processing team was divided into two different teams (REO and Pre-Foreclosure.) If the property has not yet foreclosed, the Pre-Foreclosure 571 team will process the claim. If the property has foreclosed, the REO 571 team will process the claim. We hope that this effort will make the 571 process easier for each employee. If you have any questions, please contact your 571 Representative. Thank you for your services, and we look forward to assisting you in any way possible. Sincerely, The Servicer 571 Analysis and Disbursement Team
© 2009 Fannie Mae 11.5.2010 3
General Information
The following is general information pertaining to Form 571. Submitting a Form 571 A Form 571 may be submitted when a loan is at least 90 days delinquent and has been reported to Fannie Mae for three consecutive reporting cycles via HSSN. A servicer may request reimbursement for advances made on behalf of Fannie Mae by submitting a Cash Disbursement Request (Form 571). Backup Documentation Backup documentation may be required to validate any information submitted via Form 571 and the 571 process. On March 5, 2010, new procedures for Fannie Mae servicers submitting back-up documentation for cash disbursement request claims using the Cash Disbursement Claim Form (Form 571) became effective. Using this new process, documentation can be e-mailed to a single e-mail address and automatically uploaded to a specific loan. By e-mailing 571 claim back-up documentation, servicers reduce the potential of lost documents and ensure that the person reviewing the claim has the appropriate documentation in front of them.
In order to use the new 571 claims process, servicers must have the ability to create a multi-page PDF document. It is very important that the attached file is correctly and precisely named. Fannie Mae's automated system cannot process incorrectly named e-mails and files. Additionally, the following instructions must be adhered to by servicers submitting their Form 571 back-up documentation via e-mail:
1. Submit Form 571.
Submit Form 571 via the Asset Management Network (AMN).
2. Create the PDF.
Create a single PDF PER LOAN that contains all back-up documentation pertaining to that 571 submission.
Name the PDF using the following format: Fannie Mae 10 Digit Loan Number.pdf (e.g., 1234567890.pdf).
Continued on next page
© 2009 Fannie Mae 11.5.2010 4
3. Send your e-mail.
Verify that your attached file is named correctly. Do not send your e-mail with the "Request for Read Receipt" or "Request for Delivery
Receipt" option marked. This will cause issues within our system. Remove all company or other logos from your signature, as the system reads them as
additional attachments and will reject your submission. Send your e-mail to: [email protected]. Do not reply to this e-mail
address.
Important Notes:
The mailbox above will not be personally monitored. Do not send questions, issues, etc. to this address, as your text will not be read. It is for the submission of Form 571 back-up documentation only.
Submit your Form 571 with all back-up invoices as one PDF per loan. The Fannie Mae system will not recognize submissions that do not meet the required
format as stated above. Submissions that fail to meet the required format will be automatically rejected and returned for correction.
Please remember that the Fannie Mae loan number is a 10 digit number. All 10-digits are required for a valid submission.
Amount Generally, Fannie Mae will reimburse the servicer for advances every six months, or when the expense for a specific loan is greater than $500. Timeline The final Form 571 is due within 30 days of the Real Estate Owned (REO) sale date. Claims filed after 30 days risk non-payment. In some situations, the claim may still be considered for payment, but the 571 Representative may assess a late penalty. Notes will be provided to the servicer for any curtailments made to the claim. Disposal Date It is the servicer’s responsibility to monitor the disposal date of the property and ensure all claims are filed timely. The Asset Management Network (AMN) allows servicers to monitor the status of the property. Mortgage Insurance (MI)
All pre-foreclosure sales involving mortgage insurance (MI) should have the MI claim filed with the MI insurer prior to submitting Form 571 for reimbursement. Form 571 submissions without an MI claim being filed prior to submission will be rejected.
© 2009 Fannie Mae 11.5.2010 5
Bids and Write-Offs All reduced bids and low balance write-offs must be reported to and approved by Fannie Mae through Home Saver HSSN, via AMN, prior to the actual foreclosure sale or liquidation of the mortgage from Servicer Investor Reporting (SIR).
571 Process Flow
The flowchart below represents the process flow for Form 571.
Claim processed by 571 Rep.
Servicer reviews comments by a 571 Rep in AMN and re-submits the same
claim after necessary changes have been made.
Claim partially paid.
Claim rejected.
Claim partially
paid.
Claim paid in full.
Re-submit the same Form 571.
Servicer reviews claim in AMN.
Prepares additional claim
and gathers backup docs as
necessary.
Submit a new Form 571 with
requested documentation.
Claim paid in full.
Claim paid in full.
Claim partially
paid.
Submit Form 571.
© 2009 Fannie Mae 11.5.2010 6
Loan Tags
The following loan tags identify the type of 571 claim submitted for reimbursement.
Advance* Funds have been received on or disbursed to the account. No REO-gram has been received.
Unknown* A 571 request has been received. Fannie Mae has not received or paid any funds on the account. No REO-gram has been received.
REO Loan has completed the foreclosure process and has gone through a foreclosure sale. A REO-gram was received.
Government Claim FHA or VA is the guarantor of the loan.
Loss Mitigation/Other A workout was done and completed on a loan.
*HSSN must be updated with up-to-date status prior to submission.
© 2009 Fannie Mae 11.5.2010 7
Form 571 Line Item Instructions
Any charges requested on a Form 571 must be placed on a corresponding line item. Please refer to the guidelines below when requesting funds via Form 571.
A. Attorney Fees
Fees charged by the attorney for their work on the foreclosure should be claimed on lines 1 through 8 only. Typically the attorney will bill for fees in a different section than the costs. Backup will not be reviewed by 571 Representatives for fees, as the Excess Fee group is responsible for determining what fees are necessary and reasonable. If there are any questions on over-allowable attorney fees, please have the attorney contact the Excess Fee group at [email protected]. Line 1: Foreclosure Fee
Only items billed as Attorney Fees should be requested under this line. Fees are limited to a state maximum per fee schedule outlined in Announcement 08-19.* Additional foreclosure fees will not be reimbursed without pre-approval from Fannie Mae. *Servicing Guide, Part VIII, Chapter 1, Exhibit 3: Attorney’s and Trustee’s Fees (Effective May 1, 2010)
State Nonjudicial
Foreclosure Judicial
Foreclosure
Alabama $6001
On Approval2
Alaska $1,200 On Approval2
Arizona $625 On Approval2
Arkansas $600 $750
California $6503
On Approval2
Colorado $875 On Approval2
Connecticut N/A $12504, 5
Delaware N/A $950
District of Columbia $6001, 6
On Approval2
Florida N/A $1,3001, 7
Continued on next page
© 2009 Fannie Mae 11.5.2010 8
Form 571 Line Item Instructions, continued Line 1: Foreclosure Fee, continued
*Servicing Guide, Part VIII, Chapter 1, Exhibit 3: Attorney’s and Trustee’s Fees (Effective May 1, 2010)
State Nonjudicial
Foreclosure
Judicial
Foreclosure
Georgia $6001
On Approval2
Guam $1,200 On Approval2
Hawaii $1,100 On Approval2
Idaho $600 On Approval2
Illinois N/A $1,300
Indiana N/A $1,100
Iowa $550 $850
Kansas N/A $850
Kentucky N/A $1350
Louisiana N/A $1,050
Maine N/A $1,250
Maryland $9501,6
On Approval2
Massachusetts N/A $1,3004
Michigan $700 On Approval2
Minnesota $7008
On Approval2
Mississippi $5501
On Approval2
Missouri $650 On Approval2
Montana $600 On Approval2
Nebraska $600 On Approval2
Nevada $600 On Approval2
New Hampshire $900 On Approval2
New Jersey N/A $1,300
© 2009 Fannie Mae 11.5.2010 9
Form 571 Line Item Instructions, continued Line 1: Foreclosure Fee, continued
*Servicing Guide, Part VIII, Chapter 1, Exhibit 3: Attorney Fees and Trustee Sale Fees (Effective May 1, 2010)
State Nonjudicial Foreclosure
Judicial Foreclosure
New Mexico $600 $1,100
New York $8009
$1,4004, 9
North Carolina $800 On Approval2
North Dakota N/A $950
Ohio N/A $1,350
Oklahoma N/A $1,100
Oregon $675 On Approval2
Pennsylvania N/A $1,30010
Puerto Rico N/A $1,1004, 11
Rhode Island $900 On Approval2
South Carolina N/A $1,0501
South Dakota N/A $950
Tennessee $600 On Approval2
Texas $600 On Approval2
Utah $600 On Approval2
Vermont N/A $1,05012
Virgin Islands N/A $1,100
Virginia $600 On Approval2
Washington $675 On Approval2
West Virginia $5501, 6
On Approval2
Wisconsin N/A $1,200
Wyoming $600 On Approval2
© 2009 Fannie Mae 11.5.2010 10
Form 571 Line Item Instructions, continued Line 1: Foreclosure Fee, continued
*Servicing Guide, Part VIII, Chapter 1, Exhibit 3: Attorney’s and Trustee’s Fees (Effective May 1, 2010)
Footnotes: 1This fee covers the combined attorney's and notary's fees. 2Because this is not the preferred method of foreclosure, Fannie Mae's Regional Counsel must approve its use prior to initiation by sending a request to [email protected]. Fannie Mae will provide procedural instructions and applicable fees at the time it grants approval. 3This fee applies to completed foreclosures. If the mortgage loan is reinstated after recordation of the Notice of Default (but before mailing of the Notice of Sale), the maximum fee is $300 or the maximum allowed by statute, whichever is less. If the mortgage loan is reinstated after mailing of the Notice of Sale but before the Trustee's Sale, the maximum fee is $500 or the maximum allowed by statute, whichever is less. 4An additional $200 will be permitted when the property is sold to a third party and the attorney must perform additional work to complete the transfer of title to the successful bidder. 5This fee applies to Strict Foreclosures. If the court orders a Foreclosure by Sale, the fee will be $1,500. 6This fee covers both the attorney's fee and the trustee's commission (or statutory fee). 7This fee includes reimbursement for any fee for the attorney's certificate of title. 8This fee increases to $1,100 for any case in which the attorney provides services for “proceedings subsequent” that involve registered land. 9In New York, the non-judicial foreclosure process is to be used only in connection with cooperative share loans. The fee includes all steps in the foreclosure process, including the transfer of the stock and the lease for an occupied cooperative unit. A fee of $2,000 will be permitted for judicial foreclosures in the City of New York and on Long Island (Nassau and Suffolk Counties). 10This fee covers all legal actions necessary to complete the standard foreclosure in Pennsylvania, including motions to postpone or relist a sale and motions to reassess damages. 11In addition to the allowable foreclosure fee, Fannie Mae will pay a notary fee of $150 for completed foreclosures. However, if a deed of judicial sale cannot be executed contemporaneously with the judicial sale, Fannie Mae will pay a $300 notary fee. 12This fee covers all cases in which strict foreclosure is allowed; generally, foreclosures in which the mortgagee can establish there is no equity in the property. For all other cases in which judicial foreclosure is required, a fee of $1,200 will be permitted.
© 2009 Fannie Mae 11.5.2010 11
Form 571 Line Item Instructions, continued Line 2: Bankruptcy Fee
Bankruptcy actions will be paid per fee breakdown as defined in Announcement 08-19. Any amounts requested over the amounts stated in Attachment 2 of the Announcement must have pre-approval from Fannie Mae. Before any bankruptcy fees will be paid, the user must clearly indicate the chapter number, case number, and filing date in the Web Comments section of Form 571.* Fannie Mae will only reimburse servicers for bankruptcy cases filed prior to the foreclosure date. Cases filed after foreclosure will be handled directly by Fannie Mae. For instances with multiple case filings for one loan, list each case separately in Web Comments. Fannie Mae will only reimburse for the initial filing; subsequent cases must be approved by Excess Fees. *For early claims, HSSN must report the delinquent status as Bankruptcy prior to submission. Servicing Guide 2010, Part VII, Chapter 5, Exhibit 3: Allowable Bankruptcy Attorney Fees (Effective October 1, 2008)
Bankruptcy Action Maximum Fee
Reimbursement
Chapter 7 Cases
Motion for Relief from Stay, One or Two Hearings, and Order $550
Proof of Claim Preparation (if required) 1
$150
Notice of Appearance $0
Additional Hearings or Other Services Excess fee request
Chapter 13 Cases
Proof of Claim Preparation, Plan Review, and Plan Negotiations 1
$300
Objection to Plan and One or Two Hearings $400
Motion for Relief from Stay, One or Two Hearings, and Order $650
Agreed Order: Court Certification of Default/Stay Termination $150
Agreed Order: Notice of Default/Stay Termination $50
Notice of Appearance $0
Additional Hearings on Motions for Relief from Stay or Objections to Plans
Second Motion for Relief from Stay or Objection to Plan Excess fee request
© 2009 Fannie Mae 11.5.2010 12
Line 2: Bankruptcy Fee, continued
Bankruptcy Action Maximum Fee
Reimbursement
Chapter 13 Cases, continued
Response to Proof of Claim Objection
Actions Related to Serial Bankruptcy Filers
Other Fees or Costs 2
Line 3: Deed-in-Lieu Fee
Deed-in-lieu (DIL) case must be in Closed or Completed status in HSSN before a DIL fee will be reimbursed. The maximum DIL fee for all states is $350.00. If a DIL was completed on a loan, any foreclosure fees must have approval from Fannie Mae before they will be reimbursed.
Line 4: Possessory/Eviction Fee
Fannie Mae now manages the eviction process after foreclosure. The servicer should not complete an eviction, thus this line should not be used by the servicer.
Line 5: Summary Judgment Fee
Payable for properties located in Oklahoma, Hawaii, and California. Properties located anywhere other than these states require Fannie Mae approval.
Line 6: Proceeding Subsequent Fee
Backup documentation may be requested. Line 7: Fannie Mae-Approved Additional Fees
All additional legal fees must be pre-approved by Fannie Mae. Line 8: Trustee Sale
Payable in lieu of a foreclosure attorney fee. Fannie Mae will reimburse either a Trustee Sale Fee or a Foreclosure Fee, but not both.
© 2009 Fannie Mae 11.5.2010 13
Form 571 Line Item Instructions, continued
B. Foreclosure Costs and Expenses
Foreclosure costs are the expenses incurred by the foreclosure process and are typically billed in a separate section than the attorney fees. Backup documentation may be requested at any time to verify amounts or types of costs. Line 9: Certified Mail Costs
Will require backup documentation if deemed excessive. Line 10: Eviction Costs
Fannie Mae now manages the eviction process after foreclosure. The servicer should not complete an eviction, thus this line should not be used by the servicer.
Line 11: Posting Costs
Will require backup documentation if deemed excessive. Please see the Expense Classification list on page 15 for examples of posting costs.
© 2009 Fannie Mae 11.5.2010 14
Form 571 Line Item Instructions, continued
Expense Classification
Abstractor's Complaint Review Additional Court Filing Costs Affid MLG/Notice Of Sale Recording Affid of Pub Recording Affidavit Affidavit of Service Recording Alias Summons Alias/Duplicate Summons Amended HOA Lien Recording Amended NOS Recording Application for Foreclosure Auditor's recording (all) Certificate of Non Redemption Certificate of Occupancy Certified Copies Clerk Certified Documents Clerk Deposit Clerk Writ/Exec Clerk/Prothonotary Commissioner of Accounts Fee Conveyance filing charge Court Court Approved Request BK Costs Court Denied BK Cost Request Court Designated Issue for ST Law Determination Court Order Recording Court Refused to Consider/Rule on BK Costs Court Summons Courtroom Services Pendens/NOPA Curator Fee Death Certif Recording Death Certificate Deficiency Judgment work Detainer Filing Fee DIL Recording Discharge of Certificate of Sale Discharge of Lis Pendens
Dismissal Fee Duplicate Summons Dispossessory Warrant E-file - court mandated Filing Fee Answer Filing Fee Complaint Filing Notice of Motion Filing Notice of Settlement Gross Tax Receipt Ground Rents Guardian/Curator Hearing/Trial Transcript Fees Inspection Search Internet Posting - NOS Judgment Entry Judicial Intervention Legal Expense Line to Docket Loan Modification - FNMA only Mediation Fee Memorandum of Judgment Recording Military/Alive Affidavit Misc Recording MN Stats. 582.01 and 580.30 Credit from Borrower Monument Tax Mortgage Certificate Motion for Relief Motion to Re-Open FC Case Name Change Name Change Aff Recording Non-Acc of Deed Recording Non-Court Approved MFR Costs Notarial Archives Notice of Discontinuance Notice of FC Hearing Notice of Pendency Notice of Sale Obtain Court Documents/Trustee Records Obtaining Corporate Records Order of Sale Order Vacating Final Judgment - Other Court Costs Pacer fee
Permission to FC Document POA Recording Posting Posting of NOD Posting of NOS Post-Judgment Motion Pre-foreclosure Equity Analysis Public Administrator/Executor Purchase Index Number Quit Claim Deed Recording Reconveyance Recording Recorder of Conveyances Recording Charge Referee - Report of Debt Referee Fee Referee Fee - Computation Refund to Borrower Release of Liability Writs/Judgments Release of Lien/Satisfaction Recording REO for Notice Recording Rescission of TDUS Recording Rescission Recording Resignation Recording Sales Tax on Attorney Fees - Property State Senior Lien Payoff Advance Set Aside Final Judgment Skip Trace/Search Soldiers & Sailors Search Charge Special Process Statutory Warranty Deed Sub, Deed/Recon Recording Sub-by-Code Recording Subordination Recording Tax - Professional Services Telephonic Hearing Valuation Appraisal Voluntary Case Dismissal Wire Transfer Fee Witness Fee Writs/Judgments
© 2009 Fannie Mae 11.5.2010 15
Form 571 Line Item Instructions, continued Line 12: Costs of Announcing Postponement
This line is for the costs associated with a postponement, not the attorney’s fee for postponing the sale. Provide the reason the foreclosure sale was postponed in the Web Comments section of Form 571. An invoice will always be necessary to reimburse postponement costs. If the requested amount is determined to be an Attorney Fee, Excess Fee Approval will be necessary prior to reimbursement. All postponement costs are subject to review and are paid at the discretion of the 571 Representative.
Line 13: Publication Notice Costs
Will require backup documentation if deemed excessive. Examples of Publication Notice Costs include:
Auction Advertising Costs Auditor Child Support Judgment Search Corporate Search Cost/Fee Paid to Another Attorney Court Reporter/Recorder Deposition/Transcription Fee Disbursement Advancement Discharge of Mortgage Fee DMV/SS Searches Electronic Research Field Services Guardian Ad Litem Insurance Commissioner Check Judgment Review Legal Filing Service Mennonites Mortgage and Assignment Search Notice to State Obtaining Recorded Deed Occupancy Determination charge Order for Addition Sums
Order to Show Cause Personal Service Post Office Search Postage Pre-Service Statutory Investigation Process Server Publication Publication Cancellation Publication of Process Sale Publication Service - State Required Service of Notice Service - Abandonment Service of Process Investigation/Location Service of Subpoena Service of Writ (Replevin) Service Publication Summons and Complaint Superior Review charge Transcription Fee Writ of Possession
Line 14: Recordation Costs: Notice of Default
Will require backup documentation if deemed excessive. Examples of Recordation Costs: Notice of Default include:
Certificate of Regularity NOD/Intent to Foreclose Lis Pendens/NOPA Amended NOD
© 2009 Fannie Mae 11.5.2010 16
Form 571 Line Item Instructions, continued Line 15: Recordation Costs: Substitution Trustee
Will require backup documentation if deemed excessive. Examples include Recordation Costs: Substitution Trustee include:
Appointment of Substitute Trustee Substitution Recording
Line 16: Recordation Costs: Sheriff’s Deed
Will require backup documentation if deemed excessive. Examples Recordation Costs: Sheriff’s Deed include:
TDUS Recording Deed of Trust Recording Deed Recording Filing of Deed Trustee Deed Warranty Deed
Line 17: Sheriff’s Fees and Costs
Will require backup documentation if deemed excessive. Deposits are not payable without a copy of the Sheriff/Trustee Cost sheet (on official Sheriff’s letterhead) showing how the deposit was applied. Examples of Sheriff/Trustee Fees and Costs include:
Agency Fee Auctioneer Auctioneer Commission Auctioneer Costs - Advertising Auctioneer Fees Commissioner/Special Master Fee Commissioner's Transcript of Testimony Committees Fees and Costs Copy/Fax Charge County Sale Commission Demand Document Preparation Fees Fee Waiver Misc Gain Monitor/Apply for Surplus Funds Obtain Payoff
Obtain Status Report of Sale Sale Request Service Fee Sheriff Costs Sheriff Costs (Replevin) Sheriff Fees/Commissions Sheriff Process Sheriff/Commissioner Deposit Sheriff's Deed Sheriff's Sale Settlement Tax/Redeem - Delinquent Taxes Trustee Costs Trustee Resignation Trustee Restart Fee Trustee Sale Commission Witness Fee
© 2009 Fannie Mae 11.5.2010 17
Form 571 Line Item Instructions, continued Line 18: Cost of Title Examination/Abstract
Will require backup if deemed excessive. Title policies are only payable for deed-in-lieu cases. Examples of Cost of Title Examination/Abstract costs include: 110.5 Endorsement Abstractor's Complaint Review Abstractor's Filing Fee Affidavit of Title Bond Filing Bond Premium Coop Search/Report Endorsement to Loan Policy Endorsement to Owner's Title Policy Evidentiary Affidavit Final Title Charges Government Service Charge HCD Title Search Indemnity - Pre-trial Indemnity - Trial Later Date/Update Title Search Lien Search Limited TSG (HOA) Loan Title Policy Endorsement Mileage/Vault Time/Other Municipal Liens/Certificates Municipal Tax Search Notice to IRS
Owner's and Encumbrance Report Owner's Policy, Chapter 159 Endorsement Owners Title Policy Premium PCOR Preliminary Title Report Prepare Resignation of Trustee Property/Mortgage Search Senior Lien Status Check/Monitor Tax Search/Delinquent Tax Report Tax/Lien - Certificate Texas Insurance Code Guaranty Fee Title Certificate/ Abstractor's Report Title Co. Proc Fee Title Report Review Title Search Title Search/Address Conversion Cost Title Transfer Services Trustee Sale Guarantee TSG Update UCC Search Fee Owners Title Insurance Premium Warning Order Report (spouse search)
The following costs will not be reimbursed by Fannie Mae. Title Commitments Title Curative Costs Foreclosure Sale Guarantees
© 2009 Fannie Mae 11.5.2010 18
© 2009 Fannie Mae 11.5.2010 19
Form 571 Line Item Instructions, continued Line 19: Cash for Keys/Relocation Expense
Fannie Mae manages the Cash for Keys process. The servicer should not complete a Cash for Keys transaction on behalf of Fannie Mae, thus this line should not be used by the servicer unless otherwise approved by Fannie Mae.
Line 20: Moving and Storage
Fannie Mae manages the eviction process after foreclosure. The servicer should not initiate an eviction, thus this line should not be used by the servicer.
C. Taxes
Lines 21-29:
The last positive escrow balance on all escrowed loans must be credited (on Line 54 – Escrow Balance) before taxes will be reimbursed. If the loan was a non-escrowed account, servicer should make Comments on Form 571 indicating the non-escrow status. Only the first set of late charges and penalties for each tax type are payable on non-escrowed loans, where reimbursement is permitted. The amount must be requested on Line 34 (Other Fees and Charges) with the tax type and installment date associated with the penalties stated in the Comments section of Form 571. Late charges and penalties are not payable on escrowed loans. If taxes are deemed excessive or if they vary significantly in dollar amount, further documentation may be requested. If taxes are being requested that are not able to be defined by the tax types found on the form please submit under “other tax” and describe the tax in the Comments section of Form 571. Fannie Mae will reimburse only for post-origination tax periods covering up to six months prior to Last Paid Installment (LPI) date for an escrowed account and one year prior to LPI date for non-escrowed accounts. For servicer convenience, Fannie Mae has compiled the following Tax Summary (real property tax) for informational purposes only and should not be relied upon for any other purpose. Taxing authorities in each state should be independently consulted regarding the state tax rates and procedures.
© 2010 Fannie Mae. 11.5.2010 20
Tax Summary
STATE TAX PERIOD ARREARS/CURRENT
# OF INSTALLMEN
TS DUE DATE RELEASED TYPES PENALTY & INTEREST
DUPLICATE BILL CHARGES
Alabama 10/1 to 9/30 School/Coun
ty-Arrears City- Current
Annual 12/31 10/1 County, City, Lighting Dist, Fire Dist
1% interest per month until tax is paid. Varies by Taxing Authority
Alaska (Anchorage)
1/1 to 12/31 Current Semiannual 6/15, 8/15 7/1 Municipality 10% penalty per installment plus 10.25% interest.
No duplicate bill fees
Alaska (All Others)
7/1 to 6/30 Current Annual or
Semiannual Various Not Uniform
Borough, City, County
10% penalty per installment plus 10.25% interest.
No duplicate bill fees
Arizona 1/1 to 12/31 Current Semiannual 11/1, 5/1 9/1, 3/1 County, County Bond, City Bond
16% penalty per year. 1.333% interest per month on prior year delinquencies.
No duplicate bill fees
Arkansas 1/1 to 12/31
County - 1 yr Arrears
Levee Dist - Current
Annual 10/10 County, 11/30
Levee Dist
County - 3/1, Levee Dist -
10/1 County, Levee Dist
10% penalty per year. 10% interest on prior years, calculated daily.
No duplicate bill fees
California 7/1 to 6/30 Current Semiannual 12/10, 4/10 10/1, 2/1
County, Bonds, City, Reclamation Dist, Irrigation Dist, Special Asst, Water Dist
Current year - 10% of total +$10 fee after 2nd inst. Prior Year - Additional 1.5% interest per month plus a one time $15 redemption fee.
Varies by Taxing Authority
Colorado 1/1 to 6/30; 7/1 to 12/31
Arrears Annual or
Semiannual 4/30 or 2/28, 6/15 1/1
County, Irrigation Dist, Spec Dist, County/City Bond 1 a year
1% per month penalty for 1st installment. Additional 1% per month for 2nd installment.
Varies by Taxing Authority
Connecticut 7/1 to 6/30 Current Annual,
Semiannual or Quarterly
8/1, annual. 8/1, 2/1 semiannual. 8/1,
11/1, 2/1, 5/1 Quarterly
6/1 County, City, Town, Fire Dist, Borough
18% penalty per year. No duplicate bill fees
Delaware 6/1 to 5/31 Current Annual 9/30 6/1
County/Asoc, City, Town, School, County/School Combined.
Interest is charged at 1.5% per month on the county and an additional 1% per month on the school.
No duplicate bill fees
© 2010 Fannie Mae. 11.5.2010 21
STATE TAX PERIOD ARREARS/CURRENT
# OF INSTALLMEN
TS DUE DATE RELEASED TYPES PENALTY & INTEREST
DUPLICATE BILL CHARGES
Dist. Of Columbia
10/1 to 09/30 Arrears Semiannual 3/31, 9/15 3/1, 8/15 District 10% penalty on the base amount owed and an additional 1.5% interest per month.
$3.50 for a duplicate tax bill
Florida 1/1 to 12/31 Current Annual 11/30 4% discount,
3/31 ELD 10/1 County
3% penalty and additional interest of 1.5% per month.
Varies by Taxing Authority
Georgia 7/1 to 6/30 Current Annual or
Semiannual Various Various
County, City, Spec Dist
1% interest per month and additional 10% penalty after 90 days delinquent.
Varies by Taxing Authority
Guam 10/1 to 9/30 Current Semiannual 2/20, 4/20 1/1, 3/1 Territory 9% penalty or $5, whichever is greater. No duplicate bill fees
Hawaii 7/1 to 6/30 Current Semiannual 8/20, 2/20 1/1, 7/1 County, Improvement Dist, Maintenance Dist
10% penalty and an additional 1% interest per month.
No duplicate bill fees
Idaho 10/1 to 9/30 Arrears Semiannual 12/20, 6/20 11/1, 5/1 County
2% penalty and 1% interest per month per installment. When taxes are delinquent for more than a year, interest is 1% per month on the entire balance.
No duplicate bill fees
Illinois (Cook County Only)
1/1 to 6/30; 7/1 to 12/31
Arrears Semiannual
1st Inst is always the first day in March. 2nd Inst due date
varies
1/31 County 1.5% per month penalty and interest. $5.00 for a duplicate tax bill
Illinois (All Others)
1/1 to 6/30; 7/1 to 12/31
Arrears Semiannual 6/1, 9/1 5/1, 8/1 County, Township 1.5% per month penalty and interest. Varies by Taxing Authority
Indiana 1/1 to 6/30; 7/1 to 12/31
Arrears Semiannual 5/10, 11/10 4/1 County 10% per installment. Varies by Taxing Authority
Iowa 7/1 to 6/30 Arrears Semiannual 9/30, 3/31 8/1 County 1.5% per month penalty and interest. If property goes to tax sale, the penalty is 2% per month on the sale amount.
Varies by Taxing Authority
Kansas 1/1 to 12/31 1st Current, 2nd Arrears
Semiannual 12/20, 6/20 11/1, 5/1 County 11% penalty assessed per year and accrued daily from the due date.
Varies by Taxing Authority
Kentucky 7/1 to 6/30 Current Annual Various Not Uniform County, City, School
5% penalty in January, after 1/31 10% penalty and 10% sheriff's fee.
Varies by Taxing Authority
© 2010 Fannie Mae. 11.5.2010 22
STATE TAX PERIOD ARREARS/CURRENT
# OF INSTALLMEN
TS DUE DATE RELEASED TYPES PENALTY & INTEREST
DUPLICATE BILL CHARGES
Louisiana (New Orleans
Only) 1/1 to 12/31 Current Annual 1/31 11/1 County, City 12% annually or 1% per month.
$10.00 for a duplicate tax bill
Louisiana (All Others)
7/1 to 6/30 Current Annual 12/30 12/1 County, City 12% annually or 1% per month. Varies by Taxing Authority
Maine Varies by County
Current Annual,
Semiannual, or Quarterly
Various Between June and December
City, Town No penalty, lien filed after 6 months. No duplicate bill fees
Maryland 7/1 to 6/30 Current Semiannual 9/30, 12/31 7/1, 10/1 County, City, Town, Water, Spec Dist
1% to 2% per month in most jurisdictions. Varies by Taxing Authority
Massachusetts 7/1 to 6/30 Current Semiannual or
Quarterly
Semiannual - 11/1, 5/1 Quarterly - 8/1,
11/1, 2/1, 5/1 1/1 County, City, Town
14% penalty per year. Additional interest can be charged per taxing jurisdiction.
Varies by Taxing Authority
Michigan
7/1 to 6/30 School Dist 1/1 to 12/31
Cty, City, Twp
Current Semiannual 9/14, various between
12/31 to 2/28 7/1, 12/1
County, City, Village, School, Township
Varies by taxing jurisdiction. Varies by Taxing Authority
Minnesota 1/1 to 12/31 Arrears Semiannual 5/15, 10/15 3/1, 8/1 County
1st Inst - 2% from 5/16-5/30. Additional 4% on June 1. Additional 5% on July 1. Additional 6% on Aug 1. Additional 7% Sept 1. Additional 8% Oct 1 - Dec 31. 2nd Inst - 2% from Oct 16- Oct 31. Additional 6% on Nov 1. Additional 8% on Dec 1. Additional 10% on Jan 1. If unpaid for 1 full year, 5% from Oct 16-Oct 31. Additional 7% on Nov 1. Additional 8% on Dec 1. Additional 10% on Jan 1.
Varies by Taxing Authority
Mississippi 1/1 to 12/31 Current Annual 2/1 10/1 County, Special Asst
1% per month interest until paid. Varies by Taxing Authority
Missouri 1/1 to 12/31 Current Annual Various Various County, City, Village, Township
2% penalty per month. Additional interest is added at 2% more per month. (Jan 2%, Feb 4%, March 6%......Sept - Dec 18%)
Varies by Taxing Authority
© 2010 Fannie Mae. 11.5.2010 23
STATE TAX PERIOD ARREARS/CURRENT
# OF INSTALLMEN
TS DUE DATE RELEASED TYPES PENALTY & INTEREST
DUPLICATE BILL CHARGES
Montana 7/1 to 6/30 Current Semiannual 11/30, 5/31 11/1 County 2% penalty on each delinquent installment. Interest is an additional 10% per year on the outstanding balance.
$1.00 per duplicate bill.
Nebraska (Douglas, Lancaster,
Sarpy)
1/1 to 12/31 Arrears Semiannual 3/31, 7/31 12/1 County 14% penalty per year, accrues daily. No duplicate bill fees
Nebraska (All Others)
1/1 to 12/31 Arrears Semiannual 4/30, 8/31 12/1 County 14% penalty per year, accrues daily. No duplicate bill fees
Nevada 7/1 to 6/30 Current Quarterly
Third Monday in Aug, First Monday in October, First
Monday in January, First Monday in
March
7/1
County, Local Improvement Dist, Special Assessment Dist
Varies by taxing jurisdiction. No duplicate bill fees
New Hampshire
1/1 to 12/31 or 7/1 to 6/30
Current Annual,
Semiannual, Quarterly
Annual 12/1, Semiannual 6/1, 12/1,
Quarterly 7/1, 10/1, 1/2, 3/31
6/1 County, City, Town 12% per year from the due date. Additional interest of 18% per year after a lien has been placed on the property.
No duplicate bill fees
New Jersey 7/1 to 6/30 Current Quarterly 2/1, 5/1, 8/1, 11/1 7/1 County, City, Town, Village, Borough, Township
8% for first $1,500. Additional 18% on the remaining amount due. Municipalities can assess an additional 6% penalty on amounts in excess of $10,000 if not paid by year end.
Varies by Taxing Authority
New Mexico 7/1 to 6/30 Current 1st half
Current, 2nd half Arrears
12/10, 5/10 11/1 County 1% per month with a maximum 5%. Additional interest of 1% per month.
No duplicate bill fees
New York (School, Town,
Village, County)
1/1 to 12/31 Current Annual Various Various County, School, Town, Village
1% per month from the due date. For County, Town, School. Village is 5% interest for the 1st month . Additional 1% interest for each additional month.
Varies by Taxing Authority
© 2010 Fannie Mae. 11.5.2010 24
STATE TAX PERIOD ARREARS/CURRENT
# OF INSTALLMEN
TS DUE DATE RELEASED TYPES PENALTY & INTEREST
DUPLICATE BILL CHARGES
New York City 7/1 to 6/30 Current Semiannual 7/1, 1/1 6/1 County, Boroughs, Frontage
18% per year through a mortgage company, or taxes are more than $2,750. 9% per year if taxes are less than $2,750 per year or non-escrow or vacant. Frontage interest is 18% per year.
Varies by Taxing Authority, $2-$5 per bill.
New York (All Other City)
Varies by City Current
Annual, Semiannual,
tri-annual, quarterly
Various Various City 1% per month from the due date. Varies by Taxing Authority
North Carolina 7/1 to 6/30 Current Annual 1/5 7/1 County .75% per month. Varies by Taxing Authority
North Dakota 1/1 to 12/31 Arrears Annual 3/1 12/1 County 3% March to May, 6% May to July, 9% July to October, 12% October to January.
No duplicate bill fees
Ohio 1/1 to 12/31 Arrears Semiannual 12/31, 6/30 12/1, 6/1 County 10% penalty on the base amount owed. Varies by Taxing Authority
Oklahoma (Escrow)
7/1 to 6/30 Current Annual 12/31 11/1 County 1.5% per month. No duplicate bill fees
Oklahoma (Non-Escrow)
7/1 to 6/30 Current Semiannual 12/31, 3/31 11/1 County 1.5% per month. No duplicate bill fees
Oregon 7/1 to 6/30 Current Annual 11/15 10/1 County, Irrigation, Special Assessments
1.33% per month. No duplicate bill fees
Pennsylvania 1/1 to 12/31 Current Annual Various Various County, School, Borough, Township, City
10% penalty and additional .75% per month.
Varies by Taxing Authority
Puerto Rico 7/31 to 6/30 Current Semiannual 7/31, 1/31 7/1, 1/1 CRIM Municipality 10% per year. No duplicate bill fees
Rhode Island 7/1 to 6/30 Current Quarterly 7/15 or 7/24, 10/15 or 10/24, 1/15 or 1/24,
4/15 or 4/24 1/1 County, City, Town Varies by taxing jurisdiction.
No duplicate bill fees
South Carolina 7/1 to 6/30 Current Annual 1/15 10/1 County 3% penalty 1/16-2/1. Additional 7% penalty 2/2-3/16. Additional 5% penalty 3/17 and after.
Varies by Taxing Authority
South Dakota 1/1 to 12/31 Arrears Semiannual 4/30, 10/31 1/1 County 1% penalty per month for each installment.
No duplicate bill fees
© 2010 Fannie Mae. 11.5.2010 25
STATE TAX PERIOD ARREARS/CURRENT
# OF INSTALLMEN
TS DUE DATE RELEASED TYPES PENALTY & INTEREST
DUPLICATE BILL CHARGES
Tennessee 7/1 to 6/30 Current Annual 2/28 10/1 County, City, Town 0.5% penalty and 1% interest per month beginning the day after the due date.
Varies by Taxing Authority
Texas 10/1 to 9/30 Current Annual 1/31 10/1 County, City, School, Utility, Appraisal Dist
7% penalty in Feb. Additional 9% in March. Additional 11% April. Additional 13% in May. Additional 15% in June. Additional 18% in July. Additional 15% for every month after July.
No duplicate bill fees
Utah 1/1 to 12/31 Current Annual 11/30 10/1 County 2% penalty or $10, whichever is greater from 12/1 to 1/15. Additional 6% interest, retroactive to due date.
No duplicate bill fees
Vermont Varies Current Varies by collecting agency
Varies Not Uniform City, Town, Village, School, Fire District
8% penalty. Additional interest of 1% per month for three additional months. Additional 1.5% interest per month for all remaining months.
No duplicate bill fees
Virginia 1/1 to 12/31 Current Annual 6/5, 12/5 5/1, 10/1
County, City, Town, Special Dist, Lighting Dist, Storm Water Dist
10% penalty. Varies by Taxing Authority
Virginia (Petersburg, Portsmouth,
Norfolk)
1/1 to 12/31 Current Quarterly 9/30, 12/5, 3/31, 6/5 8/1, 11.1, 3/1,
5/1 City 10% penalty.
Varies by Taxing Authority
Virgin Islands 1/15 to 1/14 Arrears Annual 8/31 6/1 Island 1.5% interest per month. No duplicate bill fees
Washington 1/1 to 12/31 Current Semiannual 4/30, 10/31 3/1, 9/1 County, Lighting Dist, Mobile Home
3% penalty to 6/1. Additional 8% penalty if not paid by 12/1. Additional 1% interest per month.
Varies by Taxing Authority
West Virginia 7/1 to 6/30 Current Semiannual 9/30, 3/31 7/1 County Sheriff 9% per year. Varies by Taxing Authority
Wisconsin 7/1 to 6/30 Current Annual or
Varied 1/31 12/1
City, Town, Village, County
1.5% interest per month. Varies by Taxing Authority
Wyoming 1/1 to 12/31 Arrears Semiannual 11/10, 5/10 9/1, 4/1 County, Irrigation 18% per year, calculated daily. No duplicate bill fees
Form 571 Line Item Instructions, continued
D. Owners Association Dues and Leasehold Payments
Lines 30 – 32: Dues
Homeowners Association (HOA) dues are typically reimbursable from the foreclosure sale date to the REO sale date (disposition). Reimbursement of amounts prior to the foreclosure date will be decided per each state’s statute. Fannie Mae reimburses only dues after the foreclosure date, and only to the REO sale date. Notes: Late fees, attorney fees, penalties and interests, or any other HOA-related fees are not to
be included in the HOA amount. (See section to follow covering Line 34) HOA dues are not reimbursable on early 571s because the foreclosure sale date has not
been reported.
If HOA dues are paid once annually, bi-annually, or quarterly, the user must state how often the dues are paid in the Comments section of Form 571.
If the property is part of a condominium association, state in the Comments section of Form
571. All home owners association dues are subject to review by the 571 Representative and backup documentation may be requested at any time to verify amounts.
E. Loss Mitigation Workout Fee
Line 33:
Payable per the approved amount in HSSN.
© 2009 Fannie Mae 11.5.2010 26
Form 571 Line Item Instructions, continued
F. Other Fees and Charges
Line 34:
A description of the fee or charge being requested must be given in the Comments section of Form 571. Backup documentation may be required. Examples of items commonly placed on line 34 include:
UCC liens Transfer taxes, Document Transfer stamps (upon approval) Vacant Property Registration Fees HOA penalties (Reviewed case-by-case only and allowed per state statutes.) Tax interest and/or penalties Municipal Violations
G. Property Preservation Expenses
Property Preservation Expenses incurred prior to the foreclosure sale date will be considered for reimbursement, but are not payable until after the loan forecloses, unless otherwise approved by Fannie Mae Property Preservation group. Post-foreclosure Property Preservation work is the responsibility of the broker assigned to the property. If a broker has not yet been assigned to the property, or other issues are involved, these may be reimbursed pending review by the 571 Representative. Please refer to the Property Preservation Matrix and Reference Guide for quick reference. Note: Property Preservation Expenses are not reimbursable prior to a foreclosure sale without pre-approval. Line 35: Boarding Up
Boarding up will be paid per the Property Preservation Matrix. A description identifying the type and number of openings that were boarded up must be placed in the Comments section of Form 571. Any costs that exceed the allowable must have approval from [email protected] before they will be reimbursed. Properties should not be boarded up unless it is absolutely necessary to prevent vandalism or secure the property, where required by local ordinance, or when windows are broken. The allowable amount for any security door and/or crawl space will include the cost of boarding up and padlock(s). United Inches (UI) is calculated by adding length and width (e.g., a 25x60 window is 85 UI).
© 2009 Fannie Mae 11.5.2010 27
Form 571 Line Item Instructions, continued
The following are the allowable amounts for boarding up:
Small 75 UI or less $60
Medium 76 - 100 UI $80 Windows
Large 101 - 125 UI $100
Slider door Up to $160
Security door Up to $250
Crawl Space Up to $60
Line 36: Cleaning – Initial
Cleaning will be paid per the Property Preservation Matrix. A description identifying the type of cleaning that occurred must be placed in the Comments section of Form 571. Any costs that exceed the allowable must have approval from [email protected] before they will be reimbursed. The following Property Preservation Expenses must be placed under Cleaning – Initial:
Refrigerator/freezer Up to $100 each
Cleaning toilet(s) Up to $75 each
Capping gas/water Up to $50 each
Removing gas can(s) or Propane tank(s)
Up to $15 each
Line 37: Cleaning – Periodic
This line item should not be used by the servicer. Place any cleaning services under Line 36 Cleaning – Initial.
© 2009 Fannie Mae 11.5.2010 28
Form 571 Line Item Instructions, continued Line 38: Landscaping – Initial:
The initial grass cut on the property should be placed on this line. Initial grass cuts will be paid per the Property Preservation Matrix. If more than one initial cut is being claimed, a description identifying the number of completed grass cuts must be placed in Web Comments. Only one initial grass cut per year will be reimbursed. Any costs that exceed the allowable must have approval from [email protected] before they will be reimbursed. The following are the allowable amounts for initial grass cuts:
Initial Lawn Cut (up to 10k sq ft) Up to $100
Initial Lawn Cut (up to 15k sq ft) Up to $150
Square footage of the property is required in Web Comments. Please see the Property Preservation Matrix and Reference Guide for more information on initial grass cuts.
Line 39: Landscaping – Periodic:
Grass re-cuts on the property should be placed on this line. Grass cuts will be paid per the Property Preservation Matrix. If more than one cut is being claimed, a description identifying the number of completed grass cuts must be placed in the Comments section of Form 571. Any costs that exceed the allowable must have approval from [email protected] before they will be reimbursed. The following are the allowable amounts for grass re-cuts:
Regular Lawn Maintenance Cut (Up to 10k sq ft): Up to $80
Regular Lawn Maintenance Cut (Up to 15k sq ft): Up to $100
Square footage of the property is required in Web Comments. Please see the Property Preservation Matrix and Reference Guide for more information on grass re-cuts.
© 2009 Fannie Mae 11.5.2010 29
Form 571 Line Item Instructions, continued Line 40: Locksmith
Lock changes will be paid per the Property Preservation Matrix. A description identifying the type and number of locks changed must be placed in the Comments section of Form 571. Any costs that exceed the allowable amount must have approval from [email protected] before they will be reimbursed. The following are the allowable amounts for lock changes:
Knob lock and deadbolt Up to $60 each
Padlock and hasp Up to $40 each
Slider lock Up to $25 each
Window lock Up to $25 each
Line 41: Maintenance/Yard Work
Bids are required for shrub trimming when shrubs affect condition, access to the property, or where local ordinance dictates. All items claimed under line 41 must have approval before they will be reimbursed. Note: Grass cuts should be claimed under line items 38-39 (Landscaping - Initial and Landscaping - Periodic).
Line 42: Termite Treatment/Inspection
Any termite treatments must have pre-approval from [email protected] in order to be reimbursed.
Line 43: Trash Removal
Any trash removal work must have pre-approval from [email protected] in order to be reimbursed.
Line 44: Service Fee
Any service fees must have pre-approval from [email protected] in order to be reimbursed.
© 2009 Fannie Mae 11.5.2010 30
Form 571 Line Item Instructions, continued Line 45: Trash Dumping Fees
Any trash dumping fees must have approval from [email protected] in order to be reimbursed.
Line 46: Winterization / De-winterization
Reimbursable up to $200 for first unit and up to $80 per each additional unit.
Winterizations and de-winterizations will be paid per the Property Preservation Matrix. A description identifying the number of units must be placed in the Comments section of Form 571 if the winterization was for a multi-unit property. Any costs that exceed the allowable must have approval from [email protected] before they will be reimbursed.
Line 47: Snow Removal
Reimbursable up to $75 one time only if needed to secure property. Line 48: Swimming Pool - Initial Service
Reimbursable up to $400. Servicers are required to drain, secure, and tarp or board where required by local ordinance. Allowable amounts may be used for, but not limited to, the following: draining, securing, locking gates, and repairing gate/fence panels that surround the pool/hot tub. Securing is defined by Fannie Mae as the confirmation that all fences and gates are intact, secured, and a minimum of four feet high.
Line 49: Swimming Pool - Periodic Service
This line item should not be used by the servicer. Place any swimming pool services under line 48 – Swimming Pool - Initial Service.
Line 50: Minor Repairs - Swimming Pool
This line item should not be used by the servicer. Place any swimming pool services under line 48 – Swimming Pool - Initial Service.
© 2009 Fannie Mae 11.5.2010 31
Form 571 Line Item Instructions, continued Line 51: Minor Repairs - Sprinkler Service
Any sprinkler repairs must have approval from [email protected] in order to be reimbursed.
Line 52: Minor Repairs - HVAC Service
Any HVAC repairs must have approval from [email protected] in order to be reimbursed.
Line 53: Repairs - Miscellaneous
Any items claimed under line 53 must have an explanation of the charge in the Comments section of Form 571. Any sump pump repairs, utility transfers/ shut off fees, or emergency repairs must be claimed under line 53. The following are the allowable amounts for miscellaneous repairs:
Emergency funds Up to $500
Sump pump Up to $300
Water/Gas/Electric/ Unclassified Utility Up to $75 for one time shut off/transfer fee of each
Emergency Repairs: The most important element in defining an emergency is that an immediate response is necessary to prevent damage or lessen the loss of property. Gradual and progressive deterioration or lack of property maintenance does not qualify as an emergency. If a servicer is requesting reimbursement for an emergency repair, an explanation of the repair and reason for immediate attention must be described in the Comments section of Form 571. All emergency repairs are reimbursed at the discretion of the 571 Representative. The 571 Representative reserves the right to direct the servicer to seek approval from [email protected] for any repair they do not feel constitutes an emergency.
H. Deductible Items
The following items are listed as credits on Form 571. Entering an amount in any of these lines will deduct from the total payable amount of Form 571.
© 2009 Fannie Mae 11.5.2010 32
Form 571 Line Item Instructions, continued Line 54: Escrow Balance
The last positive escrow balance must be reported on the first 571 submitted after each default if the loan is escrowed and escrow items (taxes and insurance) are claimed. If the loan is non-escrowed, note that in the Comments section of Form 571.
Line 55: Hazard (Flood, Wind, and Exceptional Insurances) Refund
Refunds received by the servicer for Hazard, Flood, Wind, and other Exceptional Insurances must be submitted to Fannie Mae either by using this line on Form 571 or by submitting via the Cash Remittance System (CRS) formerly called Mornet Cash Remittance System (MCRS). A refund will be required before reimbursing all Lender Placed Policies. When multiple refunds are being credited, notes must be provided by the servicer clearly identifying the type and amount for each refund.
Line 56: Other Credits
The servicer must explain the reason for the credit in Web Comments (ex. Additional payments, attorney refunds).
Line 57: Rental Proceeds
Please place any rental proceeds on this line along with the corresponding dates. I. Insurance
Line 58: Hazard Premium
Hazard insurance must be cancelled within 14 days after the foreclosure date. Therefore policies that begin on or after foreclosure are not payable. Fannie Mae will reimburse only for post-origination hazard insurance policies beginning within six months prior to LPI date. The servicer must state if the requested policy is Lender or Borrower Placed. If notes are not provided indicating the type of policy requested for reimbursement, the entire amount will be disallowed. As referenced above for Line 55, a refund credit will be required for all Lender Placed Policies. If a Lender Placed Policy is requested for reimbursement, and no refund is provided, the insurance is not reimbursable.
Line 59: MI Premium
Fannie Mae must have a record of the MI carrier in order to reimburse for MI policies. Fannie Mae will reimburse MI from LPI to the foreclosure date. Will require backup documentation if deemed excessive. Please follow the MI company’s guidelines for disbursing MI premiums.
© 2009 Fannie Mae 11.5.2010 33
Form 571 Line Item Instructions, continued Line 60: Flood Premium
Flood premiums will only be reimbursed if property is located in a FEMA designated flood zone. Backup documentation may be required that shows the property is in a flood zone. Fannie Mae will reimburse only for post-origination flood insurance policies beginning within six months prior to LPI date. The servicer must state if the requested policy is Lender or Borrower Placed. If notes are not provided indicating the type of policy requested for reimbursement, the entire amount will be disallowed. As referenced above for Line 55, a refund credit will be required for all Lender Placed Policies. If a Lender Placed Policy is requested for reimbursement, and no refund is provided, the insurance is not reimbursable. When exceptional insurances (wind, hurricane, earthquake, etc.) are requested, servicers should use this line for reimbursement. Exceptional insurances are not reimbursable unless the servicer can prove it was required to obtain this insurance separate from the hazard insurance. If multiple types of insurance are requested simultaneously, notes should be provided clearly indentifying the type and amount of each policy.
Line 61: Title Insurance
This line item should not be used by the servicer. Title policies are only payable on DIL cases and must be placed under line 18 - Cost of Title Examination/Abstract.
J. Utility Payments
Any utilities post foreclosure sale date are the responsibility of the broker. Lines 62-76:
Place the coverage dates in the From Date and To Date fields to correspond with the utility invoice that was paid. Will require backup documentation if deemed excessive. Any utility lien should also be requested here. Select the appropriate utility type from the list and state the requested amount is for a lien in Web Comments. The From and To dates should reflect the time period covered by the lien. As with any lien, back-up documentation will be necessary, including a copy of the recorded lien. If the utility bill is $1,000.00, or greater, the broker may request the servicer to pay the bill because of the excessive amount. These instances will be reimbursed to the servicer, pending two pieces of information are provided, when reimbursement is requested: the broker’s written request to the servicer requesting they pay the bill AND a copy of the original bill, where the amount of the statement matches the amount paid by the servicer.
© 2009 Fannie Mae 11.5.2010 34
Form 571 Line Item Instructions, continued
K. Appraisal Costs
Line 77: Appraisal
Appraisals will be reimbursed if there is MI on the loan or a workout attempt has been documented in HSSN (including DIL and HAMP). The maximum reimbursement allowed is one appraisal per loan, totaling no more than $350. Court ordered appraisals will also be reimbursed depending on state statute and review of backup documentation.
L. Broker’s Price Opinion
Line 78: Broker’s Price Opinion
The maximum reimbursement allowed for one Broker’s Price Opinion is $125 each. If more than one BPO, provide notes stating the number and cost of each. Back-up may be required, if deemed necessary by the 571 Analyst.
M. Property Inspection Fees
Line 79: Property Inspection Fees
Fannie Mae will reimburse up to $60.
© 2009 Fannie Mae 11.5.2010 35
Viewing Forms
Complete the following steps to view forms curtailed, paid or rejected: Note: If you are unable to access AMN, call the AMN Hotline at 800-758-7546.
1. Log into Asset Management Network (AMN) and proceed to the main menu.
2. Select View/Update Disbursement.
3. Type the Servicer/Vendor number in the Servicer/Vendor field.
4. Type the Date Submitted and Through date.
5. Click the Search button.
6. The disbursements will display.
© 2009 Fannie Mae 11.5.2010 36
Following Up on Checks
Complete the following steps to follow up on checks:
1. Log into Asset Management Network (AMN) and proceed to the main menu.
2. Select the View Checks Issued option under Form 571.
3. Provide any information available to search for the check. It is best to use the least information possible. (See below.) Enter only the check number and date if available. You must fill in the Check Dates. After entering this information, click the Search button.
4. If an issued check has not been received within 30 days of the check date, contact the Fannie Mae Accounting department. See the contact list on page Error! Bookmark not defined. for the Accounting contact information.
NOTE: If checks are going to the wrong address or if the address has changed, contact your servicing consultant to have the address changed for future checks.
© 2009 Fannie Mae 11.5.2010 37
Frequently Asked Questions (FAQs)
1. How does a servicer receive reimbursement for advances made on a mortgage? Servicers should file the Fannie Mae Form 571 – Cash Disbursement Request Form. The
form is available on our web page, efanniemae.com. All 571’s must be prepared in an electronic format. A password is required to electronically submit the form on our web page. To obtain the password, please call the Asset Management Hotline, 1-800-758-7546.
2. When can a servicer submit a 571? When the loan is at least 90 days delinquent and reported to Fannie Mae for three reporting
cycles via HSSN. Also, once the total claimable expenses are greater than $500 or the billing is six months or older.
3. When is the final 571 due? All claims should be submitted before the 30th day after the REO sale date (disposal date). 4. How do I monitor the disposal date? It is the servicer’s responsibility to review the REO status of the property. Fannie Mae
recommends that the servicer review the property status of foreclosed loans on a bi-weekly or monthly basis. This information can be found through the Asset Management Network system. Instructions: Go to the AMN Main Menu > REO Information > View REO Information Report.
5. Where should items be claimed that do not correspond with any of the lines on Form
571? If an expense has been incurred that does not correspond with any of the existing lines on
Form 571, place the expense on line 34 and place an explanation of the expense in Web Comments. Anything claimed on line 34 must have an explanation or the expense will be rejected. Additional documentation may also be required for reimbursement. You may always contact your 571 Representative for additional questions regarding the placement of items on Form 571.
© 2009 Fannie Mae 11.5.2010 38
6. How long does Fannie Mae take to process a 571 claim and when may I expect
payment? It is Fannie Mae’s goal to process all 571 claims within 30 days of the date the claim is
submitted to Fannie Mae. If the form is completed properly by the servicer, and no additional information is needed by the 571 Representative, payment should be expected in about 35 days from the date the claim is submitted. Note: Processing times are subject to change with volume influxes, but the goal is 30 days. 571 Representatives will be able to provide specifics regarding each servicer’s turn-around time.
7. Who should a servicer contact for technical support and assistance in submitting the
571 Form? The Asset Management Network Hotline, 1-800-758-7546. 8. How does a servicer check the status of a 571 Form that has been submitted? The Asset Management Network system (see page 36, Viewing Forms). 9. What are the different statuses for the 571 Form? There are several status types for Form 571. (See page 36, Viewing Forms.)
When a claim is “Submitted,”
The servicer has successfully submitted the form to Fannie Mae and it is awaiting review by the 571 Representative.
When a claim is “Rejected,”
Payment has been disallowed. The servicer will need to read the Web Comments for the specific details regarding the rejection. Servicers are able to re-submit a claim from rejected status once the necessary changes have taken place.
When a claim is “Paid,”
Payment has been approved and the check will be mailed to the servicer. The servicer needs to review the form to verify if the full amount requested was paid or if some items were curtailed. Items that were not paid on the original submission will need to be requested through a supplemental claim because Fannie Mae is not able to further process claims in “Paid” status.
© 2009 Fannie Mae 11.5.2010 39
10. How do I re-submit for amounts that have been curtailed from my original submission? Once the servicer has determined that the full payment requested was not paid and the
amount is still owed to them, an additional 571 claim may be filed. The claim will be filed similarly to the original submission, but with detail regarding any questions from the previous claim. Be sure to request only the disallowed amounts or any new billings. Claims submitted with multiple duplications may be rejected back to the servicer for clarification. It is the servicer’s responsibility to clearly communicate what is being requested. Additional comments may be necessary and backup documentation may need to be provided. If the 571 Representative has requested documentation, be sure it is sent the same day the claim is submitted, or provide notes in Web Comments indicating which date the information has been provided. Claims that are submitted for curtailed amounts, and do not provide comments indicating the requested amounts have been updated/corrected or do not indicate the requested documentation has been provided, risk rejection.
11. Can I email the back-up for my 571 Claim? Effective March 5, 2010, Fannie Mae made an announcement via eFannieMae.com outlining
procedures for providing back-up documentation to Fannie Mae. If, there is a specific issue with submitting back-up documentation as outlined in the announcement, please address the concern with your 571 Representative. Please remember Fannie Mae only accepts secure documentation. In all instances, notes should be provided on each claim when documentation is provided. 571 Representatives will not assume supporting documents were provided, unless notes from the servicer clearly indicate when and where it was sent.
12. The status of the claim is “Paid,” but no funds have been received, who do I contact? After 30 days from the date of payment, the servicer may contact the National Property
Disposition Center’s accounting department at [email protected]. Be sure to send the check number and check date in the email.
13. How long should I wait to contact Fannie Mae for outstanding checks? 31 days 14. One of the edits on the claim I submitted indicates it is “fatal.” What do I do? Claims with “fatal” edits are not able to be processed by Fannie Mae. The 571 Representative
will reject the claim back to the servicer to correct the claim and re-submit. It is best that servicers review claims for any “fatal” edits and correct them prior to submission.
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15. When should the last positive escrow balance be reported to Fannie Mae on a foreclosed loan?
The last positive escrow balance should be reported as a credit to Fannie Mae on the initial
571 Claim on line 54. If the last positive escrow balance was with a prior servicer, it is the current servicer’s responsibility to provide the information to Fannie Mae. If the loan is non-escrowed, provide notes in Web Comments indicating the loan is non-escrowed.
16. Will Fannie Mae reimburse for taxes that were incurred prior to the Last Paid Installment
(LPI) date? Reimbursement guidelines are as follows:
Escrowed Loan – Taxes are reviewable for reimbursement up to 6 months prior to LPI.
Non-Escrowed Loan – Taxes are reviewable for reimbursement up to 12 months prior to LPI. 17. Will Fannie Mae reimburse for late fees and delinquent tax penalties? Reimbursement guidelines are as follows:
Escrowed Loan – Interest and late penalties are not reimbursable on escrowed loans.
Non-Escrowed Loan – Only one late penalty and interest assessment is payable per tax type, and only for the first installment after the escrow was forced.
18. When should a servicer cancel the Hazard Insurance Policy? All Hazard Insurance policies should be cancelled by the foreclosure sale date. Fannie Mae
will allow a 14 day grace period to cancel the policy. It is the servicer’s responsibility to monitor the foreclosure sale date and make sure all policies are cancelled timely. Policies that begin the same date or after the foreclosure sale date are not reimbursable.
19. Who is responsible for payment of taxes and HOA dues while the property is listed for
sale? The servicer is required to continue payment of property taxes and HOA dues until the REO
sale. Servicers should track the status of the property in the Asset Management Network system.
20. Where does Fannie Mae publish the allowable legal fees and costs for a foreclosure or
bankruptcy action? Copies of the documentation are provided in Announcement 08-19, beginning on page 44.
Click here for Announcement 08-19 located on efanniemae.com.
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21. What if the attorney fees for a specific loan exceed the Fannie Mae allowable amount? Excess Fee approval will be required for reimbursement of any amount over the allowable.
Attorneys in the Retained Attorney Network (RAN) are responsible for obtaining approval from the Excess Fee Department. If an attorney fails to obtain approval, and is not able to provide the necessary approval documentation, reimbursement will not be allowed until the approval has been obtained. Servicers utilizing attorneys outside of the RAN will need to obtain approval directly from the Excess Fee department. Click here to access the Excess Fee Request form on efanniemae.com. (Log In required.) The Excess Fee Request Form should be submitted according to the instructions on the form.
22. The borrower has filed for bankruptcy protection, the loan is in default, and attorney
fees/costs are outstanding to the servicer. What needs to be done? A 571 Form may be submitted for the Bankruptcy attorney fees/costs once the loan has gone
into default. Make sure the HSSN reporting has been updated to show the loan is in bankruptcy. Once the reporting has been updated, a claim may be filed with the bankruptcy case number, chapter type, and filing date. If multiple filings are involved, all relevant information should be provided. The preceding question addresses fees over the allowable. Claims should not be submitted on current loans. Fannie Mae will only reimburse servicers for bankruptcy cases filed prior to the foreclosure date. Case filed after foreclosure will be handled directly by Fannie Mae.
23. Is Title insurance reimbursable by Fannie Mae? No. Title insurance is not required and therefore not reimbursable. The only exceptions are a
completed Deed-in-lieu, if it is FHA/VA required, or if the state has a specific statute requiring the insurance. Documentation will be necessary for these three exceptions.
24. Are supplemental or exceptional insurance types (wind, hail, hurricane) payable by
Fannie Mae? Yes, but only when documentation is shown that supplemental or exceptional insurance is not
part of the hazard policy and/or required by law. 25. What should the servicer do if a Fannie Mae closing agent requests that they pay
outstanding balances? (i.e. assessments, utilities, liens, etc.) The servicer should use proper judgment to ensure the request is reasonable. It is expected
that the servicer would pay the items requested by the closing agent. When filing the 571 claim for reimbursement of the items paid, a written request from the closing agent will be required by the 571 Representative.
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26. After filling out the claim form, the amount owed to the servicer is negative. Should I submit the negative claim to Fannie Mae?
No. Claims that result in a negative amount will be rejected and not reviewed for payment. If a credit is due to Fannie Mae, the amount should be remitted to Fannie Mae, under the correct remittance code, using our CRS system.
27. The mortgagor is going to redeem the property. Who do I contact to make sure any
Fannie Mae expenses are included in the payoff quote?
Contact the Asset Recovery Manager for the property at [email protected] to ensure all of Fannie Mae’s post-foreclosure property expenses are included in the redemption amount.
28. I am in receipt of a check made out to Fannie Mae, where do I send it?
Mail the funds to:
Fannie Mae Attn: Accounting Department PO BOX 277672 Atlanta, GA 30384
29. I am in receipt of a refund previously reimbursed by Fannie Mae, what should I do?
Mail the funds to:
Fannie Mae Attn: Accounting Department PO BOX 277672 Atlanta, GA 30384
30. My preforeclosure sale wasn’t paid in full, who do I contact?
For all questions regarding preforeclosure sale, modification, short sale charge off, claim not paid in full, contact [email protected] or call 888-326-6435 for Loss Mitigation or 888-326-6438 for Servicing Solutions.
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© 2009 Fannie Mae 11.5.2010 44
Announcement 08-19
Announcement 08-19 provides up-to-date details on foreclosures and bankruptcy attorney network and attorney’s fees and costs.
Property Maintenance and Management
The servicer is responsible for performing all property maintenance functions to ensure that the condition and appearance of the property are maintained properly. For detailed requirements of Form 1095, go to Property Maintenance and Management: Property Preservation Matrix and Reference Guide.
