Fannie Mae is telling outside law firms handling defaulted loans in certain states that they must reapply with the GSE and fill out a ‘request for proposal’ if they want to continue working for the company.
The RFP/re-application process affects counsel in 16 states, including California, Illinois, Maryland, Michigan, and New York among others.
A Fannie spokeswoman noted that every three years law firms, “can apply to our retained attorney network -- existing and new firms. Existing network firms reapply if they are still interested in being part of the network. We stagger the states so a third of the states are up for consideration each year.”
In its notice, the GSE said, “The failure of a firm to register or update its profile could affect the firm’s inclusion in the RFP process and preclude the firm from performing legal services on defaulted Fannie Mae single-family loans in the 16 affected states.”
