Anybody know the story behind this? Contact me. This was in the latest Fannie Servicing Announcement dated July 25, 2012. See https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2012/svc1212.pdf
Approved Title Company List for Foreclosure Evidence of Title
Servicing Guide, Part VIII, Section 106.02: Special Rules for Arizona, California, and Washington Foreclosures; Section 106.05: Prohibition Against Servicer-Specified Vendors for Fannie Mae Referrals; Section 107.07: Title Evidence; and Section 110.03: Other Reimbursable Expenses
The Servicing Guide provides that when referring a foreclosure to a trustee in the States of Arizona, California, or Washington, the servicer must require that the trustee obtain evidence of title for the foreclosure from a Fannie Mae-approved title company listed on eFannieMae.com. Effective immediately, Fannie Mae is eliminating the list of Fannie Mae-approved title companies and discontinuing this requirement. The trustee retained by the servicer may select the title company of its choice for foreclosure title work provided the title product is consistent with applicable law.
Fannie Mae will provide more specific guidance on title costs in the near future. However, the servicer must make every effort to reduce foreclosure-related costs and expenses as required by the Servicing Guide and in a manner that is consistent with all applicable law. Foreclosure title costs must be kept to a minimum. Where available, a title search, abstract, or Limited Trustee Sale Guaranty should be obtained in lieu of a full Trustee Sale Guaranty, when the cost of obtaining the title search, abstract, or Limited Trustee Sale Guaranty is less than the cost to obtain a full Trustee Sale Guaranty.
Fannie Mae also reminds servicers that they are prohibited from directly or indirectly requiring or encouraging attorneys or trustees to use specified vendors, including title companies.
And also, check out this little MERS nugget:
MERS Rule 14 Notice
Servicing Guide, Part VIII, Section 101: Routine vs. Nonroutine Litigation
Rule 14 of the MERS System Rules of Membership imposes notification requirements concerning “Legal Filings” that raise certain MERS-related challenges. The servicer is responsible for ensuring that any notification required under MERS Rule 14 is provided to MERSCORP Holdings, Inc, and immediately to Fannie Mae via email to firstname.lastname@example.org.