E-1.3-02: Reporting Non-Routine Litigation to Fannie Mae (11/12/2014)

Owned by Kacey Olson (Unlicensed)
Last updated: Nov 21, 2018
1 min read
© Fannie Mae Single Family Servicing Guide

Non-routine litigation must be reported to Fannie Mae within two business days of the servicer receiving notice of the litigation, except with respect to the following three categories of loan-level challenges:

  • a challenge to the standing of the servicer to conduct foreclosures or bankruptcies that, if successful, could create negative legal precedent with an impact beyond the immediate case;

  • a challenge to the methods by which MERS does business or its ability to act as nominee under a mortgage; or

  • any claim invoking HAMP as a basis to challenge a foreclosure.

With respect to these three categories of loan-level challenges, it is not necessary for the servicer to notify Fannie Mae until

  • the borrower seeks summary judgment on such a challenge,

  • briefing is required in response to such a challenge, or

  • the issue is expected to be raised at a scheduled trial.