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Servicer Expense Reimbursement Job Aid Effective August 24, 2016 This Servicer Expense Reimbursement Job Aid supplements the Fannie Mae Servicing Guide. Servicers remain responsible for following the Fannie Mae Single-Family Selling and Servicing Guides, Servicing Guide Procedures, Announcements, Lender Letters, and Delegations of Authority, collectively, the “Guides.” In an ongoing effort to simplify the communication between Fannie Mae and servicers, Fannie Mae has updated this Job Aid to provide additional guidance to servicers completing requests for expense reimbursements. To the extent this Job Aid may conflict with the Guides, the terms of the Guides will govern.

NOTE: The information contained in this document is not applicable to expenses incurred for Reverse Mortgages.

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Table of Contents Servicer Expense Reimbursement Job Aid .......................................................................................................... 1 General Information .............................................................................................................................................. 4

Servicer Expense Process Flow ....................................................................................................................... 4 When to Submit an Expense Reimbursement Claim ............................................................................................ 5

Initial Claim ....................................................................................................................................................... 5 Final Claim ........................................................................................................................................................ 5

Where to Submit an Expense Reimbursement Claim .......................................................................................... 5 LoanSphere Invoicing™ Claim Status Definitions ............................................................................................ 6 Pending Servicer Review (PSR) Status ............................................................................................................ 6

Reviewing Claims in Pending Servicer Review (PSR) Status ...................................................................... 7 What to Submit for an Expense Reimbursement Claim ....................................................................................... 8

Fannie Mae Expense Reimbursement Reviews ............................................................................................... 9 Pre-Payment Review .................................................................................................................................... 9 Supporting Documentation for Pre-Payment Review Requests ................................................................... 9 Post-Payment Review ................................................................................................................................. 10

Payment Information ....................................................................................................................................... 10 Expense Types ................................................................................................................................................... 11

Bankruptcy Attorney’s Fees ............................................................................................................................ 11 Foreclosure Attorney’s Fees ........................................................................................................................... 11 Homeowner’s Association (HOA) / Condominium Association (COA) and Other Expenses .......................... 12 Insurance ........................................................................................................................................................ 12 Legal Costs ..................................................................................................................................................... 13 Reoccurring (Ongoing) Property Inspections .................................................................................................. 13

Line Item changes for Property Inspections ................................................................................................ 13 New Jersey Vacancy Property Inspections for Expedited Foreclosure Actions ............................................... 14 Non-Recoverable Advances ........................................................................................................................... 14 Property Preservation Expenses .................................................................................................................... 14

Taxes .................................................................................................................................................................. 15 Utilities ................................................................................................................................................................ 15 Helpful Links ....................................................................................................................................................... 16

Black Knight Financial Services (BKFS) Desktop Bulk Load Function ........................................................... 16 Fannie Mae Learning Center .......................................................................................................................... 16 Fannie Mae Servicing Solutions ..................................................................................................................... 16 Inquiry Response Tool (IRT) ........................................................................................................................... 16 LoanSphere™ Training ................................................................................................................................... 17

Frequently Asked Questions ............................................................................................................................... 18

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General Submission Q&As ............................................................................................................................. 18 Expense Q&As ............................................................................................................................................... 19 System Q&As ................................................................................................................................................. 22

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General Information This section provides general information about the submission process for servicer expense reimbursement claims.

Servicer Expense Process Flow The flowchart below represents the process flow for servicer expense claims submitted in Black Knight Financial Services LoanSphere Invoicing™.

Submit Servicer Expense Reimbursement Claim

Claim processed by Reimbursement

Analyst

Claim paid in full Claim denied Claim moved to Pending Servicer

ReviewClaim partially paid

Servicer reviews Reimbursement

Analyst’s comments in LoanSphere

Invoicing, makes necessary

changes, and resubmits the updated claim

Servicer reviews Reimbursement

Analyst’s comments in LoanSphere

Invoicing, gathers required supporting

documentation, and submits new

claim for any amounts not paid,

if applicable.

Claim paid in full Claim denied

Claim partially paid

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When to Submit an Expense Reimbursement Claim Servicers must be familiar with Fannie Mae’s policies found in the “Guides” (Fannie Mae Servicing Guide E-5-01: Requesting Reimbursement for Expenses) before submitting requests for reimbursement of expenses.

Initial Claim It is acceptable, and recommended, to submit the Initial Claim when an advance under $500 has been outstanding for at least six months or an expense on an individual case is $500 or more. This process eliminates the need to wait for disposition to file initial and subsequent claims. This process also allows additional time to address Fannie Mae’s requests for supporting documentation, thereby reducing the risk of late claim denials.

Final Claim The REO Sale Date or Disposition Event Date are the date a property was sold via a direct sale, third party sale, or short sale. Servicers are responsible for monitoring the property REO sale or disposition event date and ensuring all claims are submitted timely. The Asset Management Network (AMN) system is a web-based application and allows servicers to monitor the status of the properties. The final request for reimbursement for expenses must be submitted within 30 days after:

completion of a workout option;

the date the claim was filed, if the property will be conveyed to the insurer or guarantor;

a third party acquires the property at the foreclosure sale, or

Fannie Mae disposes of an acquired property.

All claims submitted more than 30 days after the above described events may be denied for late filing or assessed a late submission compensatory fee.

Where to Submit an Expense Reimbursement Claim LoanSphere Invoicing™ System is a web-based expense reimbursement system that allows servicers to consolidate invoice processing and expense reimbursement claims into one application, creating a more seamless servicer reimbursement experience. It is also the system Fannie Mae uses to decision claims. A servicer may request reimbursement for advances made on behalf of Fannie Mae by submitting a request for reimbursement in the LoanSphere Invoicing™ System (https://im.lpsdesktop.com/Login/NewWayLogin.aspx). Reference the Servicer Expense Reimbursement Line Items in LoanSphere Invoicing™ document for a list of all expense categories and subcategories available in BKFS LoanSphere Invoicing™.

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LoanSphere Invoicing™ Claim Status Definitions Claim statuses provide descriptive information about a claim in LoanSphere Invoicing™. The statuses and descriptions are outlined below:

Claim Status Description Accepted A claim that has been decisioned but requires secondary review by Fannie Mae.

Acknowledged A claim that a reimbursement analyst has viewed.

Approved A claim that has been approved to be paid.

Curtailed A claim that has been curtailed below the original claim amount.

Denied A claim for which the expense reimbursement request has been declined.

Hold A claim that the servicer has not submitted to Fannie Mae.

Investor Voided A claim that Fannie Mae voided through LoanSphere Invoicing™.

Paid A claim that Fannie Mae approved/curtailed and disbursed funds.

Payment Rejected A claim that has been decisioned but did not meet Fannie Mae’s criteria for payment.

Payment Resolution A claim’s original payment was voided and is in the process of being reissued.

Pending Payment A claim that has been approved/curtailed and is pending payment.

Pending Servicer Review A claim in which the reimbursement analyst has requested the Servicer to clarify, change, or complete a process.

Servicer Voided A claim that the servicer voided through LoanSphere Invoicing™.

Submitted A claim that the servicer submitted to Fannie Mae, but a reimbursement analyst has not yet viewed.

Pending Servicer Review (PSR) Status Fannie Mae Expense Reimbursement is reintroducing the Pending Servicer Review (PSR) functionality. PSR is a status within LoanSphere Invoicing™which will be used to request additional information from the servicer when necessary.

Claims in this status are only visible to servicers.

Servicers will be required to review this queue regularly.

Fannie Mae will request additional information within the Comments of the claim and Servicers will need to provide the requested information and return the claim within 30 days of when the claim was put into PSR.

If the claim is not returned timely, it may be denied.

Additional information about how to review the claims in the PSR queue is below.

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Reviewing Claims in Pending Servicer Review (PSR) Status Claims in PSR status should be viewed as often as possible to avoid claims being denied because there is no response. For step-by-step instructions for reviewing claims in PSR status, refer to Viewing Claims in Pending Servicer Review Status.

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What to Submit for an Expense Reimbursement Claim Fannie Mae reserves the right to request supporting documentation on any submitted expense at any time. A servicer is required to maintain all invoices, and provide invoices at any point if requested by Fannie Mae. Refer to Fannie Mae Servicing Guide F-1-06: Expense Reimbursement. As a general practice, Fannie Mae strongly recommends servicers upload the supporting documentation for expenses listed below at the time of submission. This will reduce the need for unnecessary denials and resubmissions. If, during the submission of the claim, the LoanSphere Invoicing™ system provides an alert indicating the expense is excessive, servicers should provide supporting documentation at the time of submission. If an expense reimbursement claim is paid and Fannie Mae retroactively requests supporting documentation, but the servicer is unable to produce supporting documentation, the servicer will be required to refund to Fannie Mae the expense reimbursement which was paid. Fannie Mae will require the servicer to provide supporting documentation when the claim is submitted for all of the following expense types:

Expense Type Supporting Documentation Examples Attorney Costs Attorneys’ invoices for cost related expenses

Property Insurance

Supporting documentation is considered sufficient when it comes from the insurance company and contains the following data: • Insurance Company Name • Property Address or servicer loan number • Coverage Period • Premium Amount Examples include, but are not limited to, the following: • Declaration pages • Evidence of Insurance • Notice of Insurance • EDI (Electronic Data Interchange)

Homeowners Association/Condo Association Assessments (HOA/COA) and Other Expenses

Include one of the following: • Detailed HOA invoice • HOA payment coupon or itemized statement for late fees showing time

period • Ledger statement (with payment history) • Invoice from attorney or property management firm • Copy of recorded lien and release of lien

Liens Recorded lien Municipal Violations Violation from municipality or third party vendor Specialty Property Inspections, such as inspections required for repairs, or inspections required for expedited foreclosure proceedings

Invoice from property inspection vendor

Sheriff’s Fees and Costs Itemized Sheriff’s Cost Sheet or acceptable documents referenced in the Servicing Notice January 09, 2013.

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Expense Type Supporting Documentation Examples

Taxes, Tax Penalties and Interest

Supporting documentation is considered sufficient when it contains the following data: • Tax amount itemized to list tax penalties and interest, if applicable • Type of tax or municipality (city, county, school, etc.) • Due date, and service dates or coverage dates • If applicable, the date the tax discount expires and/or the tax payment date

Acceptable documents are tax statements from a taxing authority or third party vendor. The third party vendor may be a servicer affiliate and/or subsidiary.

Vacant Property Registration Vacant Property Registration on official form from municipality or third party invoice showing property address

Fannie Mae Expense Reimbursement Reviews Fannie Mae is implementing a review of expenses incurred during loss mitigation and foreclosure activities. Expenses may be reviewed prior to or after disbursement of payment.

Pre-Payment Review Servicers may receive a request to submit additional supporting documentation for certain expenses that do not typically require documentation when a claim is selected for pre-payment review. Servicers will receive notification to submit supporting documentation within LoanSphere Invoicing™ using the PSR status. The servicer will need to return the claim with the supporting documentation within 30 days of when the claim was put into the PSR status. If the claim is returned without the supporting documentation, the expense will be denied or curtailed. If the claim is never returned, the claim may be denied after 30 days.

Supporting Documentation for Pre-Payment Review Requests Fannie Mae will require the servicer to provide supporting documentation when one or more of the following expenses are selected for a pre-payment review. All of these expenses may not require additional review. The requested documentation will be clearly indicated in the claim’s comments:

Expense Type Supporting Documentation Examples Homeowners Association/Condo Association Assessments (HOA/COA) Dues

Include one of the following: • Detailed HOA invoice • HOA payment coupon or itemized statement for late

fees showing time period • Ledger statement (with payment history) • Invoice from attorney or property management firm • Copy of recorded lien and release of lien

Mortgage Insurance (MI) Mortgage Insurance Certificate Reoccurring (Ongoing) Property Inspections Invoice from property inspection vendor Technology Usage Fees Invoices from a third party vendor Utility Bills Invoices showing utility company name, dates of service,

address of property

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Post-Payment Review If a claim is selected for a post-payment review, Servicers may be asked to provide supporting documentation for an expense after an expense has already been paid. If the supporting documentation cannot be provided, the expense may be referred to Fannie Mae’s collection department.

Payment Information Automated Clearinghouse (ACH) is the primary method by which expense reimbursement funds are disbursed. To confirm a check or an ACH notification has been sent, the check number, with the amount of the check and the date it was issued is available in Asset Management Network (AMN). If the check or an ACH notification has not been received, please contact the Fannie Mae Accounting Department via email at FannieMae_REO_Disbursements@fanniemae.com. Please ensure the following information is included in the request:

Amount of check

Check date

Check number (ACH disbursements begin with a 6)

Fannie Mae 10-digit loan number

Purpose of inquiry

If the bank account information or ACH email address requires an update, please contact the Fannie Mae REO Vendor Department by emailing REO_vendors@fanniemae.com regarding any ACH related questions. Please ensure the following information is included in the request:

ACH# (should start with a 6)

Additional information as appropriate

Vendor ID number

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Expense Types The most common submission expense types are listed below; however, this is not an inclusive list of all submission expense types.

Bankruptcy Attorney’s Fees Fannie Mae requires servicers to submit supporting documentation for all bankruptcy attorney fee reimbursements. All servicers who need access to the Attorney Authorization Approval (AAA) Matrix must contact their Fannie Mae Technology Manager and request Legal Documents access to the Fannie Mae business portal. The Excess Attorney Fee Request Guideline page is located at FannieMae.com on the Single Family Servicing page under the Delinquency/Default Prevention & Management link. Once on the page, servicers can select the appropriate state and enter their Fannie Mae Legal Documents access login information that was obtained through their Fannie Mae Technology Manager. The current Fannie Mae bankruptcy attorney’s fee schedule is available at: https://www.fanniemae.com/content/guide_exhibit/allowable-bankruptcy-attorney-fees.pdf. Attorneys are responsible for seeking approval from the Fannie Mae Excess Fee Team for any reimbursable bankruptcy attorney’s fees not covered by an allowable bankruptcy fee. Attorneys must follow Fannie Mae’s established excess fee request process using the LoanSphere Invoicing™ System Investor Pre-approval (IPA) module. Servicers may send inquiries about the excess fee process by emailing excess_fee_request@fanniemae.com or contacting their Servicing Management representative. All bankruptcy claims must be filed using the “Bankruptcy” Department within Loansphere Invoicing™, and must include the following information in the line item “Detail”:

Case Number

Chapter Number

Filing Date

Foreclosure Attorney’s Fees Fannie Mae requires servicers to submit supporting documentation for all foreclosure attorney fee reimbursements. All servicers who need access to the AAA Matrix must contact their Fannie Mae Technology Manager and request Legal Documents access to the Fannie Mae business portal. The Excess Attorney Fee Request Guideline page is located at FannieMae.com on the Single Family Servicing page under the Delinquency/Default Prevention & Management link. Once on the page, servicers can select the appropriate state and enter their Fannie Mae Legal Documents access login information that was obtained through their Fannie Mae Technology Manager. Fannie Mae posts the current life of loan allowable foreclosure attorney’s fees at: https://www.fanniemae.com/content/guide_exhibit/allowable-attorney-trustee-foreclosure-fees.pdf. The allowable foreclosure attorney’s fees are dependent on the referral to foreclosure date. To ensure the accurate reimbursement of foreclosure attorney’s fees, servicers must file all claims using the “Foreclosure” Department within Loansphere Invoicing™ and must populate the foreclosure referral date within the ‘Referral Date’ field in the expense line item details. Attorneys are responsible for seeking approval from the Fannie Mae Excess Fee Team for any reimbursable foreclosure attorney’s fees not covered by an allowable foreclosure fee. Attorneys must follow Fannie Mae’s established excess fee request process using the LoanSphere Invoicing™ System IPA module. Servicers may

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send inquiries about the excess fee process by emailing excess_fee_request@fanniemae.com or contacting their Servicing Management representative.

Homeowner’s Association (HOA) / Condominium Association (COA) and Other Expenses Homeowner’s Association (HOA)/Condominium Association (COA) dues are always reimbursable from foreclosure to disposition. Reimbursement of HOA/COA dues outside of that timeframe will be decisioned per the applicable state’s statute. State statutes also govern when other HOA expenses such as attorney fees and other fees, including interest, late fees, and fines/penalties should be reimbursed. If the other expenses are permitted by the applicable state, Fannie Mae will reimburse these expenses with supporting documentation.

Late fees, attorney fees, penalties and interest, or any other HOA-related fees should not be included in the HOA Dues amount. These expenses are reimbursable per each state statute but must be submitted separately. For information regarding guidelines per state statute, contact the attorney handling the foreclosure.

If HOA dues are paid annually, bi-annually, or quarterly, the servicer must indicate how often the dues are paid in the LoanSphere Invoicing™ “Detail.”

See What to Submit for an Expense Reimbursement Claim.

Insurance Fannie Mae requires servicers to submit supporting documentation for all homeowner’s and lender placed insurance reimbursements. Supporting documentation is considered sufficient when it comes from the insurance company and contains the following data:

Insurance Company Name

Property Address or servicer loan number

Coverage Period

Premium Amount

See What to Submit for an Expense Reimbursement Claim. All lender placed policies must be cancelled or expired prior to requesting reimbursement. A refund credit is required for all lender placed policies cancelled prior to the expiration date. If no refund is provided, the insurance premium is not reimbursable. The last positive escrow balance on all escrowed loans must be credited before insurance premiums are reimbursed. The servicer should indicate if the loan was escrowed or non-escrowed in the LoanSphere Invoicing™ “Detail” when submitting expenses for insurance premiums. Lender placed policies must be cancelled within 14 days after the property appears on the Vacancy Report in HomeTracker®. Refer to Fannie Mae Servicing Guide E-4.4-01: Continuing or Canceling Property Insurance Coverage and subsequent announcements for updates. Fannie Mae generally requires flood insurance for any property that has improvements located in a Special Flood Zone. Flood premiums will only be reimbursed if the property is located in a Special Flood Zone. A flood certificate is required to validate that the property is in a Special Flood Zone. When other peril insurance types such as wind, hurricane, earthquake, etc. are requested, servicers should document the type of insurance being requested in the “Details” section of the claim line item in LoanSphere Invoicing™.

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Legal Costs Fannie Mae requires servicers to submit supporting documentation for all legal cost reimbursements. See What to Submit for an Expense Reimbursement Claim. Legal costs associated with a foreclosure, bankruptcy, or other legal proceeding, are billed on separate line items from attorney’s fees. Fannie Mae requires servicers to provide supporting documentation to verify amounts or types of costs. A few examples of legal costs include, but are not limited to:

Filing or other court costs

Publication costs

Service of process costs

Sheriff’s fees and costs

Title examination costs

Reoccurring (Ongoing) Property Inspections New expense line items within LoanSphere Invoicing™ are available for reoccurring property inspections. These new line items will eliminate the need to itemize every reoccurring property inspection. The Servicer will be required to enter in a Service From and Service To date that encompasses all property inspections performed during that time frame. Servicers must submit all property inspections performed between the specified Service From and Service To dates and should combine the total cost of those inspections completed.

For example: If 3 exterior inspections were performed for $15.00 each between January and March of 2016, Servicers should submit a claim using the Subcategory Exterior Property Inspections, with a Service From Date of 01/01/2016 and a Service To Date of 03/31/2016. The requested expense amount should total $45.00.

Line Item changes for Property Inspections New property inspections line items have been created to submit claims using a Service From and Service To date:

Category ID Category Subcategory ID Subcategory 19 Property Services 8029 Exterior Property Inspections 19 Property Services 8030 Interior Property Inspections

Effective November 1st, 2016, the following property inspections line items below will be deactivated and will no longer be available to Servicers:

Category ID Category Subcategory ID Subcategory 19 Property Services 8011 Exterior Property Inspection 19 Property Services 8013 Interior Property Inspection

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New Jersey Vacancy Property Inspections for Expedited Foreclosure Actions In addition to the reoccurring (ongoing) property inspections, a one-time reimbursement in excess of the allowable property inspection fees will be allowed for a vacancy property inspection in the State of New Jersey, provided the inspection was conducted for purposes of the expedited foreclosure process for vacant and abandoned properties. All of the following are required for reimbursement of this type of expense:

The expense was incurred on or after April 1, 2013.

The invoice for the inspection must be provided to support the dollar amount.

A copy of the vacancy certification or a copy of the inspection report must be provided.

Explanation and/or documentation that inspection was conducted in connection with an expedited foreclosure.

This property inspection expenses should be submitted using the LoanSphere Invoicing™ line item below. Category ID Category Subcategory ID Subcategory 19 Property Services 8021 Specialty Inspection

Non-Recoverable Advances Expenses incurred in connection with a reinstatement, payoff, or modification should be paid by the borrower or third party purchaser. Fannie Mae will only reimburse servicers if the expense is determined to be legally non-recoverable. Fannie Mae does not reimburse servicers for recoverable advances a servicer fails to collect. Servicers submitting requests for reimbursement of non-recoverable advances should include a comment on the claim stating the expense was determined to be legally non-recoverable. Fannie Mae may request an invoice and/or other appropriate supporting documentation (e.g., applicable state statute) to support the reimbursement request. For additional guidelines regarding expenses, refer to the Fannie Mae Servicing Guide F-1-06: Expense Reimbursement.

Property Preservation Expenses Claims submitted for property preservation expenses, such as cleaning, landscaping, and maintenance, must follow the requirements below:

Expenses on the claim must be itemized; recurring expenses should not be aggregated, and

Expenses must have a completion date that represents the date the expense was incurred.

If reimbursement is requested for recurring or frequent expenses within similar timeframes, Fannie Mae may require supporting invoices to validate the expense. The itemization requirements and completion date requirement will impact the batch file/bulk upload process, as well as the manual submission of claims. Expenses not itemized with a completed date will be rejected.

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Property preservation expenses, with the exception of property inspections, will not be reimbursed until the property is confirmed to be vacant. The first time the property is vacant may be reported to the servicer by the property inspection results, notification from the borrower, or any verifiable source. The first time vacancy (FTV) date should be included in the claims by entering in the Description field as either FTV, First Time Vacancy Date, or Vacancy date. This indication and date in the description field will increase efficiencies and help prevent rejections due to lack of information. For additional guidelines regarding property preservation, refer to the Fannie Mae Servicing Guide E-3.2-12: Performing Property Preservation During Foreclosure Proceedings.

Taxes Fannie Mae requires servicers to submit supporting documentation for all tax reimbursements. All supporting documentation must:

Be sourced from the county or vendor; a screen print from the servicer’s system is not acceptable supporting documentation,

Validate the property is a Fannie Mae property

Include the tax amount

Include the type of tax or municipality (city, county, school, etc.)

Include the due date, and the service dates or coverage dates

If applicable, the date the tax discount expires and/or the tax payment date

See What to Submit for an Expense Reimbursement Claim. The last positive escrow balance on all escrowed loans must be credited before taxes are reimbursed. The servicer should indicate if the loan was escrowed or non-escrowed in the LoanSphere Invoicing™ “Detail” when submitting expenses for taxes. Fannie Mae will only reimburse for post-origination tax periods. Only the first set of reimbursable tax installments qualify for reimbursement consideration of late charges and penalties on non-escrowed loans. Late charges and penalties are not payable on escrowed loans. Servicers must be familiar with current Fannie Mae policies before submitting requests for reimbursement of taxes. Refer to guidelines on Fannie Mae Servicing Guide F-1-06 for Delinquent Tax, Late Charges and/or Penalties.

Utilities New utility expense line items are available in LoanSphere Invoicing™ for utility expenses. The new utility line items require servicers to enter Service From and Service To dates in the system. The new utility expenses should be submitted using the LoanSphere Invoicing™ line items below:

Category ID Category Subcategory ID Subcategory 19 Property Services 8031 Utilities – Electric 19 Property Services 8032 Utilities – Gas 19 Property Services 8033 Utilities – Water

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Effective November 1, 2016, the following utility expense line items in LoanSphere InvoicingTM will be deactivated and will no longer be available to Servicers:

Category ID Category Subcategory ID Subcategory 19 Property Services 8023 Utility Bill - Electric 19 Property Services 8024 Utility Bill – Gas 19 Property Services 8025 Utility Bill - Water

Helpful Links The links below are provided as helpful tools for servicers.

Black Knight Financial Services (BKFS) Desktop Bulk Load Function BKFS Desktop has “Bulk Load” functionality that allows servicers to submit claims in bulk versus individually. Bulk Load functionality and access are provided through BKFS PowerCell group, the BKFS support arm. To access “Bulk Load” functionality, the servicer should contact PowerCell via the information provided below or call their primary BKFS support contact.

Phone: 904-854-3100, options 4,1

Email:

♦ western.powercell@lpsvcs.com

♦ southern.powercell@lpsvcs.com

♦ Midatlantic.powercell@lpsvcs.com

Fannie Mae Learning Center The Fannie Mae Learning Center offers training information on the single-family business portal designed with the user in mind. https://www.fanniemae.com/singlefamily/learning-center#

Fannie Mae Servicing Solutions For general servicing or loss mitigation questions, please email servicing_solutions@fanniemae.com or call 1-800-2FANNIE (1-800-232-6643). Click here for a guide to the menu selections on 1-800-2FANNIE.

Inquiry Response Tool (IRT) On June 1, 2015, Fannie Mae launched the Inquiry Response Tool (IRT) portal to improve our ability to respond and track inquiries related to expense reimbursement claims. This tool is used for questions related to:

Expenses: denied, curtailed, or pending

Unclear instructions around a claim submission

System issues

Link to the tool: https://fanniemae.decisionreadysolutions.com/

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LoanSphere™ Training www.lpslearningsolutions.com Customer support for training questions can be accessed by the following methods:

Phone: 904-854-5462 (follow the prompts for LoanSphere Invoicing™)

Email: IM.Support@LPSVCS.com

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Frequently Asked Questions General Submission Q&As

Q1. When should servicers submit an initial expense reimbursement claim? An initial request for reimbursement may be submitted when an advance under $500 has been outstanding for at least six months or an expense on an individual case is $500 or more.

Q2. When is the final claim for reimbursement due? The final request for reimbursement for expenses must be submitted within 30 days after:

• completion of a workout option;

• the date the claim was filed, if the property will be conveyed to the insurer or guarantor;

• a third party acquires the property at the foreclosure sale, or

• Fannie Mae disposes of an acquired property.

All claims submitted more than 30 days after the above events may be denied for late filing or assessed a late submission compensatory fee.

Q3. What are the expected service levels for claim processing? Generally, claims are processed within 30 days of submission.

Q4. How does adding or changing something on a claim after I submit it in LoanSphere Invoicing™ affect how long it will take to pay the claim?

Claims are processed based on claim age. The age of a claim is determined by the submission date. Updating a claim after it has been submitted changes the submission date. As a result, the age of the claim starts over based on the new submission date. Continuing to make updates to a claim may cause the claim to exceed the timely submission deadline, which may result in a claim being denied for late submission.

Q5. What if circumstances beyond my control caused a late claim submission? Escalate to the Servicing Management partner.

Q6. When should I expect to get funds? Within 10 days of the claim showing a “Paid” status in the LoanSphere Invoicing™ System.

Q7. How long should I expect to wait for an inquiry response? Generally, a response should be received within seven days of submission.

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Q8. What if we get money that is not ours? Contact the Fannie Mae accounting team by emailing: fanniemae_reo_disbursements@fanniemae.com for further instructions.

Q9. What is Fannie Mae’s expectation for reporting delinquency status on properties? The servicer must report delinquency history by the 2nd business day of every month for every loan that is 30+ days delinquent as of the last day of the preceding month, or if any action was taken to cure the delinquency during the preceding month even if the loan is less than 30 days delinquent. See Servicing Guide F.1.32.

Q10. What does “Pay to the Gain” mean, and how does it impact reimbursements? “Paid to the Gain” are the instructions we received from the FHA, VA, or third party sales reconciliation team based on their reconciliation of the insurance claim/sales proceeds.

Q11. I have submitted a claim for an FHA, VA or third party sale loan and received notification there were no reimbursement instructions for the processing team or from the reconciliation team. What does this mean and what are my next steps?

In order to process a claim for reimbursement, the Expense Reimbursement team needs feedback from the reconciliation teams prior to reimbursing expenses for FHA, VA, and loans sold to third parties. Even though sales proceeds may have been received, there are no comments providing 571 claim reimbursement instructions.

For Third Party Sales inquiries, send the request to the TPS general mailbox: claims_npdc@fanniemae.com. For FHA/VA Loan inquiries, send the request to: fnma_claims@fanniemae.com.

Q12. How can I ensure that Fannie Mae knows a loan has been in bankruptcy if I’m not specifically requesting reimbursement of bankruptcy fees?

If the loan has ever been in bankruptcy, the servicer should include a comment on the claim with the case number, chapter type, and bankruptcy filed date.

Expense Q&As

Q13. How are utility liens following a foreclosure action handled? They are reviewed on a case-by-case basis. Please submit an inquiry through IRT and include a copy of required documentation.

Q14. Is the servicer responsible for water/sewer charges during the foreclosure process? Refer to Servicing Guide for servicer obligations: Fannie Mae Servicing Guide F-01-06

Q15. Are Trustee Fees reimbursable? Yes, trustee fees are handled the same as attorney fees; however, servicers are entitled to either a trustee fee or an attorney fee but not both. See Bankruptcy Attorney Fees.

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Q16. Are Estoppel Fees reimbursable? Yes, with supporting documentation.

Q17. Are foreclosure attorney fees reimbursable to the servicer in the event that a completed Deed in Lieu (DIL) occurs?

Foreclosure Attorney fees and DIL document preparation fees are reimbursable. DIL document preparation fees will be reimbursed only once per life of loan.

Q18. What should I provide when a Mortgage Insurance (MI) premium is deemed excessive? Servicers must provide the Mortgage Insurance (MI) Certificate when submitting a claim for MI premium.

Q19. Are HOA late fees, penalties and interest, and attorney fees reimbursable? State statutes govern what fees are collectible, including attorney fees and other fees (such as interest, late fees, and fines/penalties). If the fees are state allowable, Fannie Mae will reimburse for these expenses with supporting documentation. Servicers must know and maintain current state statutes and provide requested documentation to Fannie Mae.

Q20. Certain states and counties will not send out tax bills. What should the servicer send in for documentation?

Log onto the county website or call, and obtain a copy of the tax bill. Supporting documentation must:

• Be sourced from the county or vendor; a screen print from the servicer’s system is not acceptable supporting documentation • Validate that the property is Fannie Mae’s • Include the tax amount • Include the type of tax or municipality (city, county, school etc.) • Include the due date, and the service dates or coverage dates

• If applicable, the date the tax discount expires and/or the tax payment date

Refer to What to Submit for an Expense Reimbursement Claim.

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Q21. How do I obtain approval for property preservation expenses exceeding allowable tolerances?

The servicer must follow the guidelines set forth by the Property Preservation group for reimbursement of amounts over tolerance and provide the date the work was completed.

When reimbursement for preservation work is requested, verify the amounts requested on the Property Maintenance and Management: Property Preservation Matrix and Reference Guide based on the date the work was completed.

All preservation work is expected to be completed within the allowable tolerances. When work cannot be completed within the allowable tolerances a bid must be submitted via HomeTracker® with a detailed description, reason for the bid request, and photos to support the bid. Approval must be obtained for all bids over the allowable tolerances prior to initiating work.

Q22. How do I get reimbursed for expenses related to Bankruptcy Cramdowns? Once the cramdown has been approved by bankruptcy_administration@fanniemae.com, expenses are reimbursed like any other expenses.

Q23. Are Servicemember Civil Relief Act (SCRA)/Military Indulgence expenses reimbursable? SCRA/Military Indulgence expenses are not individually reimbursable; those expenses are included as part of the overall amount of foreclosure allowable attorney fees.

Q24. How do I obtain information or instructions related to reimbursement of recording fees on paid-off loans?

Please send inquiries to: Recording_fees@fanniemae.com

Q25. How do I submit for reimbursement of a lien? In order to be reimbursed for payment of a lien, servicers must provide a copy of the recorded lien. If a lien is not recorded, the expense should be submitted under the category and sub-category specific to that expense.

Example: A utility lien that is not recorded should be submitted under the specific utility line item.

Q26. How can I ensure that I am reimbursed the entire allowable foreclosure attorney fee as outlined in the Allowable Foreclosure Attorney Fees Exhibit?

The life of loan allowable foreclosure attorney’s fees are based on the date the mortgage loan was referred to foreclosure and the allowable foreclosure fee as of the date of the referral, as indicated in the Allowable Foreclosure Attorney Fees Exhibit. Servicers should always include the Foreclosure Referral Date in the ‘Referral Date’ field of the requested expense. Claims without a referral date in the detail section of the line item may not be reimbursed.

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System Q&As

Q27. How do I activate my seller/servicer ID (SSID) in LoanSphere Invoicing™ for claims submissions?

The following steps should be followed to activate an SSID:

a. Contact Black Knight (904-854-5462) for information to activate an SSID.

b. Complete instructions provided by Black Knight Financial Services (BKFS). Upon completion of these steps, submit an inquiry in IRT using the following link https://fanniemae.decisionreadysolutions.com/ for activation of the SSID.

Q28. How do I check the status or view my existing claims? a. Log into the LoanSphere Invoicing™ system.

b. On the home page, click the View existing claims link. The My Claims search filters display.

c. Complete the filter fields as needed and click Search. The My Claims Report is displayed.

To display additional information for a particular claim, click a claim number link.

Q29. How do I know what claims have been denied? a. Log into the LoanSphere Invoicing™ system.

b. On the toolbar, hover over Reports, hover over Claims, and click Denied Claims Report. The Denied Claims Report search filters display.

c. In the From and To fields, type the date range to filter the report, or click the Calendar icons and select the desired dates.

d. Click Search. The Denied Claims Report is displayed.

e. To view additional details for a claim, click a claim number link under the Claim # column.

Q30. Can adjustments be made to a decisioned claim and then resubmitted? Not at this time. Fannie Mae is evaluating possible system enhancements.

Q31. How many different expenses can I submit for HOA/COA expenses? LoanSphere Invoicing™ allows three separate claims entries for HOA/COA expenses. As long as the service dates are sequential for multiple expenses, servicers can combine the expenses within the claim.

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Q32. How can I access HomeTracker® to comply with guidelines regarding insurance cancellation after a property is foreclosed?

Please refer to Servicing Guide Announcement SVC-2013-04 – Hazard Insurance Coverage at https://www.fanniemae.com/content/announcement/svc1304.pdf.

Fannie Mae will provide the vacant property report through HomeTracker®. If the servicer has not acquired access to HomeTracker®, instructions (How to Obtain Access to HomeTracker®) are available on Fannie Mae’s website at https://www.fanniemae.com/content/tool/hometracker-how-obtain-access.pdf.

Servicers must request access to HomeTracker by contacting the Fannie Mae Property Cost Management Team at property_preservation@fanniemae.com.

For questions regarding this report, please email REO_hazard_claims@fanniemae.com.

Q33. What if I don’t know which category and subcategory to use in LoanSphere Invoicing™? Reference the Servicer Expense Reimbursement Line Items in LoanSphere Invoicing™ document for a list of all expense categories and subcategories available in BKFS LoanSphere Invoicing™.

Q34. What does the Claims Status Definition ‘Pending Servicer Review’ mean? A claim has been submitted and reviewed and a reimbursement analyst has requested the servicer to clarify, change, or complete information necessary to reimburse a claim. Claims in this status require additional information from the servicer before the claim can be processed.

Q35. How long do servicers have to update the claims with ‘Pending Servicer Review’ status? Claims in the Pending Servicer Review status are evaluated every 90 days. Any claims that are 30+ days aged may be denied.