Fannie says it will be keeping tabs on all whole mortgages, participation pool mortgages, and MBS pool mortgages with a special servicing option referred to an attorney or trustee to initiate foreclosure proceedings on or after July 1, 2010. Company officials will be scrutinizing servicer data to identify delays in the default management process.

According to the GSE, it may elect to perform a more extensive servicing review – possibly on-site – to further evaluate the actions the servicer took on certain mortgage loans. Servicers must send the requested documentation or make it available…within the time frame specified in the notification. If the servicer fails to do so, Fannie Mae may assess compensatory fees without first reviewing the loan or exercise other available remedies, the GSE warned.

Fannie Mae will communicate any performance deficiencies to the servicer, who will then be given an opportunity to explain any mitigating circumstances or factors that justify the servicing actions it took or did not take within a reasonable time frame.

“A compensatory fee not only compensates Fannie Mae for damages but also emphasizes the importance placed on a particular aspect of the servicer’s performance,” the GSE stated in its servicing guide.