Fannie Mae Increases Foreclosure Attorney Fees in Maryland

""Fannie Mae"":http://www.fanniemae.com issued a ""servicing guide announcement"":https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2011/svc1101.pdf Tuesday amending the company's requirements regarding foreclosure attorney fees for properties located in the state of Maryland.

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Effective for mortgage loans referred to an attorney on or after February 1, 2011, Fannie Mae is increasing the maximum allowable attorney fee for legal work related to non-judicial foreclosures of whole mortgage loans, participation pool mortgage loans, and mortgage loans within mortgage-backed securities (MBS) with the special servicing option.

The fee will be increased from $950 to $1,300 and include the combined attorney's fees, notary's fees, and the trustee's commission (or statutory fee).

In the updated guidelines, Fannie Mae reminded servicers that non-judicial foreclosure is the preferred method of foreclosure for properties located in Maryland.

A servicer must request prior approval from the GSE to foreclose in a judicial manner in the state.