Weekly Real Estate News
Fannie Mae has increased allowable attorney fees for foreclosure cases in every U.S. jurisdiction and territory and raised bankruptcy attorney fee limits across all chapters. The changes take effect January 1, 2027, and cover matters still active on that date regardless of when they were referred to counsel.
The changes appear in Servicing Guide Announcement SVC-2026-06, issued October 14. Fannie Mae also discontinued a separate Florida trial fee. The revised exhibits specify the limits for individual proceedings and jurisdictions.
The reimbursement ceilings affect how servicers budget for legal expenses and what they may recover from the investor. They do not authorize passing every expense through to borrowers: charges must still comply with the mortgage documents and applicable law.
Fannie Mae also changed access to its Do Not Send 1099-C list. Servicers must review the loan-level list through Fannie Mae Connect no later than the tenth business day of January and subscribe to notifications about its availability. The new procedure takes effect January 15, 2027.
The announcement changes fee schedules and reporting operations. It does not state that every canceled mortgage debt is exempt from tax reporting or that the new legal fee caps are already in force. Servicers should check the revised fee exhibits and their January reporting calendars.
Illustrative photograph: Towfiqu barbhuiya / Unsplash.
