However, according to the bulletin, Fannie is pushing the date by which servicers must implement the new requirements out by a month to October 1, 2011.
The revised requirements are part of the directive issued by the company’s regulator in late April to bring both Fannie Mae’s and Freddie Mac’s procedures for handling past-due mortgages in line with one another.
Fannie explains that the new rules are intended to increase the transparency and accountability of both the servicer and the borrower throughout the foreclosure prevention process.
Jeff Hayward, SVP of Fannie Mae’s National Servicing Organization, says the new standards give homeowners having difficulty with their mortgage payments a clear, consistent process to understand their options and get ahead of the problem early.
Servicers will be rewarded with monetary incentives for maintaining certain standards and timelines for loan modifications, other workouts, and foreclosures, and will be held accountable and fined for failing to comply.
Fannie Mae says the new delinquency management and default prevention requirements are designed to streamline and simplify servicing processes and help servicers become more effective in communicating with distressed borrowers when it comes to loss mitigation.
Specifically, the policy changes promote early delinquency intervention, increase the number of attempts the servicer must make to contact the borrower during the various stages of delinquency, and introduce a Quality Right Party Contact standard.
In addition, Fannie Mae is updating its guidelines for modifications and is requiring servicers to institute processes and procedures for handling borrower inquiries and escalated cases.
The new guidelines for delinquency management and default prevention are available on Fannie Mae’s business site.