New foreclosure rules force Fannie to up attorney fees in three states

Fannie Mae will allow its servicers to pay its network of attorneys more for foreclosure work in New York, Delaware and Hawaii.

Each state recently included new steps in the foreclosure process. In the case of Hawaii, the state legislature effectively shifted all foreclosures to the judicial system. All pending Fannie Mae foreclosures that have not proceeded to a resale must be dismissed and restarted in the new judicial process, according to guidance issued to servicers Thursday.

Fannie Mae warned servicers of this new policy in June.

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