Mortgage servicers could be slapped with a fee by the Federal National Mortgage Association if they are late reporting account information on time.
The secondary lender already sends a failed business rules report to servicers that are late submitting reports for investor reporting.
In addition, Fannie Mae sends failed business reports to servicers with reports that don’t utilize the correct data and formats.
Now, according to a Servicing Notice issued Friday, the Washington, D.C.-based firm could assess a compensatory fee and choose to offer a remediation period.
“A servicer may be assessed these fees to reimburse Fannie Mae for the losses and damages that result from such servicing breaches, including reimbursement for Fannie Mae’s internal administrative costs in tracking, reporting and correcting these errors,” the notice stated.
The first time a servicer is late or inaccurate in reporting, the fee will be the greater of $250 or $50 per loan. The maximum for first-time offenders is $5,000.
In the second instance, the greater of $500 or $50 per loan will be charged up to a maximum of $10,000. This applies if the second occurrence happens within 12 months of the first.
Additional occurrences will cost servicers the greater of $1,000 or $50 percent loan up to $15,000.
Fannie said it will start n issuing warning letters and assessing compensatory fees on May 1.
“Alternatively, Fannie Mae reserves the right to issue an indemnification demand to any servicer that breaches these servicing requirements,” the notice stated.
