Fannie Mae Announcement SVC-2011-07, Delinquency Management & Default Prevention, is effective October 1, 2011.  As part of the new requirements, after an account review determines all delinquency management requirements have been met and that there is neither an approved payment arrangement nor a foreclosure alternative offer pending, Servicers will need to provide the foreclosure attorney with written certification prior to the foreclosure sale.  There is a small window of time to submit this certification to the foreclosure attorney. Attorneys (or trustees) will have to cancel the foreclosure sale if the certificate is not received prior to the foreclosure sale.
 
Certification Prior to Foreclosure Sale
The servicer must provide a written certification to the foreclosure attorney (or trustee) at least 7 calendar days, but no greater than 15 calendar days prior to the foreclosure sale. If, based on the account review, the servicer determines that all delinquency management requirements have been achieved and that there is neither an approved payment arrangement nor a foreclosure alternative offer pending, the servicer must send written certification to the attorney (or trustee) seven days prior to the foreclosure sale date indicating the attorney (or trustee) must continue with the foreclosure sale.

• The servicer must work with the attorney (or trustee) to develop a process for receipt of the certification to prevent unnecessary delays. Delays in the foreclosure proceeding timelines resulting from cancellation of the foreclosure sale or from a servicer’s failure to provide timely certification to the attorney (or trustee) will be subject to compensatory fees.

WWR has confirmed with Fannie Mae that they will allow adjournments, even serial adjounments, if that is permitted by state and local practice, as long as it is expected t obe less expensive than a cancellation and rescheduling. The WWR Real Estate Default Group is dedicated to working closely with servicers to ensure the certification is received timely to help prevent any unnecessary delays or additional costs. 

WWR will continue to monitor and communicate updates regarding this portion of the directive as they are received.  Information regarding other portions of this servicing announcement will be communicated in subsequent advisories.

Contact
Heather Schneider
REDG Training & Development Manager
216.685.4285
hschneider@weltman.com