source:
  type: guide
  id: fnma-svc-e-5-04
  authority: Fannie Mae Servicing Guide E-5-04 — Allowable Foreclosure Fees
  description: Fannie Mae Servicing Guide E-5-04 — Allowable Foreclosure Fees.
  coverage_tier: operative
obligations:
- id: fnma-svc-e-5-04-full
  canonical_id: fnma-svc-e-5-04-full
  section: Fannie Mae Servicing Guide E-5-04 — Allowable Foreclosure Fees
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide E-5-04 — Allowable Foreclosure Fees
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: cf63a82bbb4adfba
    fetched_at: '2026-05-22T23:53:19Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'E-5-04, Allowable Foreclosure Fees (02/12/2020) The maximum
      attorney fees that Fannie Mae allows for legal proceedings related to foreclosures
      appear in the Allowable Foreclosure Attorney Fees Exhibit. Generally, Fannie
      Mae will not reimburse the servicer for any attorney fees that exceed or are
      not included within Fannie Mae''s maximum allowable foreclosure fee schedule—unless
      the law ﬁrm obtains the appropriate excess fee approval from Fannie Mae''s SF
      CPM division (see F-4-02, List of Contacts). The servicer must also ensure allowable
      foreclosure fees comply with the milestone invoicing requirements set forth
      in E-5-05, Reimbursing Law Firms/Reimbursement of Uncollected Fees, Costs or
      Advances. The servicer may access additional resources on managing default-related
      legal services, including the process for the law ﬁrm to request Fannie Mae
      approval for certain excess legal expenses, on Fannie Mae’s website. The allowable
      fee applies for the life of the default and covers services necessary to complete
      a routine foreclosure action in the jurisdiction. In the event that a default
      is cured, such as by a completed loan modiﬁcation or reinstatement, and the
      loan subsequently becomes delinquent again, a new allowable foreclosure fee
      applies without the need for excess fee approval when the servicer must initiate
      new foreclosure proceedings. In general, the maximum allowable foreclosure fee
      for a judicial foreclosure is intended to cover all services that are typically
      required to be performed by foreclosure counsel in the prosecution of a judicial
      foreclosure in accordance with local law. The following table lists the services
      included in the allowable judicial foreclosure fee. Judicial Foreclosure Services
      A Ordering title. B Reviewing title reports and exceptions. C Drafting Complaint,
      Summons, Lis Pendens, and other papers necessary to initiate the foreclosure
      action. D Filing the foreclosure Complaint and Lis Pendens. E Executing all
      steps necessary to obtain service of process on all defendants, including review
      of process server aﬃdavits, obtaining court permission to serve by publication,
      and referral and tracking of published notices. Published May 13, 2026 510 Judicial
      Foreclosure Services F Preparing legal papers for entry of foreclosure judgment,
      whether by default or through summary judgment process. G Obtaining judgment
      of foreclosure, including one court appearance. H Preparing all legal papers
      to conduct the foreclosure sale. I Conducting, or arranging for the sheriﬀ or
      other third party to conduct, the foreclosure sale. J Attending the foreclosure
      sale, when required. K Obtaining judicial conﬁrmation of foreclosure sale, where
      required by local law. L Preparing all legal papers necessary to convey title
      to Fannie Mae or a successful third-party bidder. In general, the maximum allowable
      foreclosure fee for non-judicial foreclosures is intended to cover all services
      that are typically required to be performed by counsel in the completion of
      a non-judicial foreclosure resulting in title transferring from the borrower
      to the highest bidder at the foreclosure sale, in accordance with local laws.
      The following table lists the services included in the allowable non-judicial
      foreclosure fee. Non-Judicial Foreclosure Services A Ordering title. B Reviewing
      title reports and exceptions. C Preparing all necessary legal papers to initiate
      the non-judicial foreclosure process, including Substitution of Trustee, Notice
      of Default, and Notice of Sale. D Recording the necessary documents in the appropriate
      county recorder''s oﬃce. E Executing all steps necessary to obtain service of
      process on all persons entitled to notice, including review of process server
      aﬃdavits and referral and tracking of published notices. F Publishing and posting
      the requisite notices as required by local foreclosure law. Published May 13,
      2026 511 Non-Judicial Foreclosure Services G Preparing all legal papers to conduct
      the foreclosure sale. H Conducting, or arranging for sheriﬀ or other third party
      to conduct, the foreclosure sale. I Attending the foreclosure sale, when required.
      J Preparing and ﬁling a report of sale with the local court or recorder''s oﬃce,
      where required by local law. K Preparing all legal papers necessary to convey
      title to Fannie Mae or a successful third-party bidder. For both judicial and
      non-judicial foreclosure actions, the full attorney fees cannot be considered
      to be earned until all of the steps necessary to complete the foreclosure and
      vest title in Fannie Mae, including any post-sale conﬁrmation or ratiﬁcation
      proceedings, have been completed. For both judicial and non-judicial foreclosure
      actions, the maximum allowable attorney fee does not include the costs involved
      in such a proceeding, such as title charges, ﬁling costs, recordation costs,
      process server expenses, and publication costs, as applicable. Fannie Mae will
      reimburse the servicer for reasonable attorney fees necessary to resolve issues
      caused by unexpected events, unless they are due to a breach or alleged breach
      of selling warranties or representations or origination or selling activities,
      the servicer''s failure or alleged failure to satisfy its servicing duties and
      responsibilities, or actual or alleged error or lack of diligence on the part
      of the servicer as it relates to law ﬁrm performance management and compliance
      oversight. Events that may require additional legal services include, but are
      not limited to, the following: additional court appearances due to borrower
      delay or court-initiated continuances; motions to shorten redemption periods
      (for instance, when a property has been abandoned); litigation activities, including
      discovery practice, motions, trial, and appeal, engendered by borrower defenses
      not related to origination or servicing of the mortgage loan or the acts or
      omissions of a law ﬁrm selected and retained by the servicer; probate court
      practice required due to the death of the borrower or co-borrower; or intervention
      by other claimants, including taxing authorities or HOA or condo associations.
      The servicer must pay counsel a reasonable fee for services rendered if additional
      legal services are required to protect Fannie Mae''s interest and the legal
      services Published May 13, 2026 512 are not within the scope of services contemplated
      by the maximum allowable foreclosure fee; and are required due to a breach or
      alleged breach of selling warranties or representations or origination or selling
      activities or to the lender’s failure or alleged failure to satisfy its duties
      and responsibilities as a servicer. In these circumstances, Fannie Mae will
      not reimburse the servicer for the fees. The servicer must not require (and
      must not permit their aﬃliates or any outsourcing companies or other third-
      party vendors utilized by the servicer to assist in servicing defaulted mortgage
      loan to require) law ﬁrms to perform additional services for no compensation.
      Some of the services for which the servicer is obligated to pay counsel without
      reimbursement from Fannie Mae may include, but are not limited to, the following:
      Title curative work, including judicial proceedings to eliminate recorded liens
      that are prior in time; judicial proceedings to account for missing intervening
      assignments; and legal analysis and communications with prior lienholders and
      title companies. Litigation activities, including discovery practice, motions,
      trial, and appeal, caused by borrower defenses related to origination or servicing
      of the mortgage loan, including payment dispute allegations. Fannie Mae will
      not reimburse the servicer for legal fees and expenses related to actions that
      are essentially servicing functions or for expenses that are properly allocated
      to the law ﬁrm’s overhead expenses, since such expenses are taken into consideration
      when Fannie Mae establishes its fee schedule. Expenses that are generally considered
      to be overhead costs include: travel time and expenses, document preparation
      charges, secretarial and word processing “time” charges, fees for notary services,
      photocopy charges, charges for certiﬁed copies of documents, charges for legal
      services to the trustee, telephone charges, and any charges for calls or correspondence
      to the servicer or Fannie Mae. Recent Related Announcements The table below
      provides references to recently issued Announcements that are related to this
      topic. Announcements Issue Date Announcement SVC-2020-01 February 12, 2020 Published
      May 13, 2026 513'
  judgment: false
