Fannie Mae Servicing Guide E-5-03 — Allowable Bankruptcy Fees

Fannie Mae Servicing Guide E-5-03 — Allowable Bankruptcy Fees

E-5-03, Allowable Bankruptcy Fees (12/18/2024) Fannie Mae's schedule of maximum allowable attorney fees for services rendered in connection with bankruptcy actions is included in the Allowable Bankruptcy 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 bankruptcy 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 should charge the borrower only those bankruptcy fees and costs that are permitted under the terms of the note, security instrument, and applicable law and that are prorated to reasonably relate to the amount of work actually performed. The servicer must also comply with the additional requirements set forth in E-5-05, Reimbursing Law Firms/Reimbursement of Uncollected Fees, Costs or Advances. When legally permissible, the servicer must preserve the borrower's obligation to reimburse it for attorney fees and costs paid for bankruptcy actions in accordance with local bankruptcy rules and all applicable law. The servicer is obligated to compensate the law firm for the work performed, but is not completed, on a prorated basis to reasonably relate to the amount of legal work performed and the actual, reasonable, and necessary costs incurred by the law firm. The servicer may request reimbursement by submitting a Request for Expense Reimbursement to 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-2024-07 December 18, 2024 Announcement SVC-2020-01 February 12, 2020 Published May 13, 2026 509

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