Fannie Extends Servicer Deadline for Delinquency Counseling Refunds
Fannie Mae (FNM) granted another extension to a reimbursement program for servicers who pay delinquency resolution counseling fees for troubled borrowers. According to an e-mailed servicing policy update, the government-sponsored enterprise (GSE) extended the period of time for servicers to request reimbursement for counseling provided by members of the Hope Now private sector alliance of mortgage servicers, investors, insurers and non-profit counselors. Servicers may now request reimbursement for counseled cases initiated on or after July 1, 2010 through June 30, 2011. The cases must be invoiced no later than Sept. 30, 2011 and the reimbursement requests must be submitted on or before Nov. 30, 2011, Fannie said. According to a lender letter (download here), the reimbursement initiative was previously extended from its initial Dec. 31, 2008 deadline, through June 30, 2010. Servicers can receive a maximum $150 per case for each mortgage owned or securitized by Fannie and serviced under the GSE's special servicing option. According to data tracked by Hope Now, completed loan modifications, trial modifications and other workout plans surged 92% to 1.36m in Q110, from 710,000 in the year-ago quarter. "Alliance members have demonstrated their commitment to helping homeowners, their ability to find workable solutions and their willingness to implement multiple intervention solutions to stabilize markets and homeowners," said Hope Now executive director Faith Schwartz in May. Write to Diana Golobay. Disclosure: the author holds no relevant investments.