Fannie Mae released an updated Servicer Expense Reimbursement Job Aid on September 19, 2018. The release of this job aid continues Fannie Mae’s efforts to simplify communication and streamline processes via Fannie Mae’s Expense Straight Through Processing efforts.
After a thorough review of the job aid, CRFS has determined the following changes which impact the claims process:
- Removal of the required documentation table from the “What to Submit for an Expense Reimbursement Claim”
- Updated the Pending Submitter Review section
- Added a Post-Payment Review section
Removal of the required documentation table
With the effective date of this job aid, October 1st; Fannie Mae has removed the prior requirements to have all supporting documentation accompany the claim at the time of submission. Based upon our review of this communication, Fannie Mae is only requiring supporting documentation for the following expense types at the time of claim submission: (1) Flood Insurance; (2) One-time inspections in the state of New Jersey; and, (3) Requests from Fannie Mae’s title/closing department to pay a utility expense.
Additionally, Fannie Mae still has the requirement that all supporting documentation must be maintained and available upon their request. So it is still important to validate you have all necessary supporting documentation ready and available should Fannie Mae select the loan for either Pre-Payment Review or Post-Payment Audit.
Updated the Pending Submitter Review section
Fannie Mae has updated this section to align with the Pre-Payment Review process. Once the claim is submitted, if exceptions occur or Fannie Mae randomly selects the loan, Fannie Mae may require additional supporting documentation for expenses claimed. When that documentation is needed, Fannie Mae will place the loan in the Pending Submitter Review queue which notifies the claim filer that additional documentation is needed.
Added a Post-Payment Review section
With this update, Fannie Mae has created a Post-Payment Review process which all claims are eligible for. In the event Fannie Mae needs additional information or documentation, Servicers will receive an email request from the Post-Payment Documentation Request Portal. Servicers will have 10 days to acknowledge and respond to the request.
Please contact Sean Snook at CRFS at 585.590.5406 for additional information on this important change to FNMA’s procedures.
