T4
FANNIE_MAE
High Confidence
Guidance
Lender Letter LL-2025-01 Updates to the Foreclosure Time Frames and Compensatory Fee Allowable Delays Exhibit
GSE alignment with FHFA direction to standardize foreclosure timeframes across government-sponsored enterprises
LOW
Impact Level
Top: Compliance (2)
Classification
- Regulatory Program
- GSE Servicing Standards
- Doc Type
- Guidance
- Effective Date
- 2025-07-01
- Days to Action
- -380
- Comment Deadline
- —
- Published
- 2025-04-09
Urgency Basis
Effective date of July 1, 2025 is over 180 days past today's date of June 2, 2026, indicating this change has already taken effect and no immediate action is required for implementation
Operational Context
Affected Functions
Compliance
Operations
Legal
Institution Applicability
All
Impact by Category
Compliance
2
Operational
2
Data Governance
1
Model Risk
0
Reporting & Disclosure
2
Capital & Liquidity
0
Consumer Protection
1
Third-Party Risk
1
Key Requirements
- Update foreclosure timeline tracking systems to reflect new state-specific maximum allowable days
- Apply new timeframes to all loans with foreclosure sale dates on or after July 1, 2025
- Add COVID-19 Foreclosure Moratorium and Forbearance as allowable delay categories
- Remove Unemployment Forbearance from allowable delay calculations
- Continue using current exhibit for loans with foreclosure sale dates prior to July 1, 2025
Scoring Rationale
This is a Fannie Mae operational guidance update that modifies existing foreclosure timeline requirements rather than creating new regulatory obligations. Impact scores are low to minimal as this represents incremental changes to established GSE servicing standards. The change affects multiple jurisdictions but is primarily operational in nature, requiring system updates and process modifications rather than fundamental compliance restructuring.
AI Analysis Disclosure — This record, including its scores, impact assessments, and Advisory
Assessment (impact, risk, and recommended actions), was generated by an AI model and may contain errors or
omissions. The Advisory Assessment is a starting point for analysis, not a substitute for professional judgment.
Effective dates, applicability determinations, impact assessments, and any recommended actions should be
independently verified against primary regulatory source documents and reviewed by qualified compliance or legal
personnel before taking compliance action. This output does not constitute legal or compliance advice.