A2-1-01, Contractual Obligations for Sellers/Servicers (08/02/2023)

Role of mssc, special seller/servicer approval and mssc addendum, lender contract: integration and non-divisibility, amendments to the guides, general contract terms.

After Fannie Mae approves a seller or servicer or seller/servicer, both parties execute the Mortgage Selling and Servicing Contract (MSSC) and any other relevant agreements. The continuation of that relationship depends on both parties honoring the mutual promises in the Lender Contract.

The MSSC establishes the basic legal relationship between a seller, servicer or seller/servicer and Fannie Mae and

establishes the entity as an approved seller of mortgages and participation interests or an approved servicer of mortgages or both; and

incorporates by reference the Selling Guide , the Servicing Guide , the Requirements for Document Custodians , Software Subscription Agreement, Manuals, Announcements, Lender Letters, Release Notes, Notices, directives and other documents which may be incorporated by reference into the Guides, all as amended or supplemented from time to time.

Certain loan types or processes require special approval. The following special approvals will be documented by an addendum to the Mortgage Selling and Servicing Contract (MSSC) between Fannie Mae and the seller/servicer:

co-op share loans,

HomeStyle Renovation mortgages,

electronic mortgages (eMortgages), and

bifurcation servicer in Servicing Marketplace (SMP).

Sellers/servicers may request approval to sell these loans or acquire servicing in SMP through their Fannie Mae customer account team. Sellers/servicers may not sell or service these loan types unless they obtain the applicable special approval and execute any additional agreements required by Fannie Mae. Sellers/servicers that apply for special approval to sell HomeStyle Renovation mortgages must also complete a Special Lender Approval Form ( Form 1000A ).

Fannie Mae reserves the right to cease approving sellers/servicers, or for purchasing any or all of the loan types listed above from any or all sellers/servicers, and to cease approving servicers for acquisition, or allowing the transfer of servicing in SMP. The decision to no longer purchase such loans or permit the acquisition of servicing in SMP may result in an amendment to, or the termination of, the special approval. Fannie Mae will provide the affected seller/servicer with reasonable notice of this decision. If the decision affects a seller/servicer's ability to fulfill any required mandatory delivery amount under its Lender Contract, Fannie Mae will consider alternatives through which the seller/servicer can fulfill its delivery obligation.

The MSSC and all of the documents referenced above, together with any other agreements with Fannie Mae that provide for additional obligations to Fannie Mae, such as commitments, variances, special requirements, technology agreements, and collateral agreements, are together referred to as the “ Lender Contract ” and form a single, integrated contract.

A servicer or seller/servicer’s benefits and obligations to service loans under the Lender Contract are integrated and cannot be separated from the seller’s or seller/servicer’s benefits and obligations to sell loans under the Lender Contract.

Fannie Mae relies on this integration and non-divisibility in entering into, and continuing to be bound by, the Lender Contract and in consenting to a servicing transfer.

All of Fannie Mae’s communications (Guides, Manuals, Announcements, Lender Letters, Release Notes, and Notices and directives) are incorporated into the Guides by reference, and are effective on the dates specified in such documents. Certain information and requirements posted on Fannie Mae's website are also incorporated by reference into the Guides.

Fannie Mae transmits communications to sellers, servicers and seller/servicers by posting them on Fannie Mae’s corporate website (or other websites as Fannie Mae may establish in the future). Fannie Mae also publishes some communications (for convenience) via AllRegs.

The following table describes some general contract terms.

The table below provides references to recently issued Announcements that are related to this topic.

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Originating & Underwriting

Selling Guide

assignment of contract fannie mae

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(Published: May 01 2024)

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  • Copyright and Preface
  • A1-1-01, Application and Approval of Seller/Servicer
  • A2-1-01, Contractual Obligations for Sellers/Servicers
  • A2-1-02, Nature of Mortgage Transaction
  • A2-1-03, Indemnification for Losses
  • A2-2-01, Representations and Warranties Overview
  • A2-2-02, Delivery Information and Delivery-Option Specific Representations and Warranties
  • A2-2-03, Document Warranties
  • A2-2-04, Limited Waiver and Enforcement Relief of Representations and Warranties
  • A2-2-05, Invalidation of Limited Waiver of Representations and Warranties
  • A2-2-06, Representations and Warranties on Property Value
  • A2-2-07, Life-of-Loan Representations and Warranties
  • A2-3.1-01, Lender Breach of Contract
  • A2-3.1-02, Sanctions, Suspensions, and Terminations
  • A2-3.2-01, Loan Repurchases and Make Whole Payments Requested by Fannie Mae
  • A2-3.2-02, Enforcement Relief for Breaches of Certain Representations and Warranties Related to Underwriting and Eligibility
  • A2-3.2-03, Remedies Framework
  • A2-3.3-01, Compensatory Fees
  • A2-4.1-01, Establishing Loan Files
  • A2-4.1-02, Ownership and Retention of Loan Files and Records
  • A2-4.1-03, Electronic Records, Signatures, and Transactions
  • A2-4.1-04, Notarization Standards
  • A2-5-01, Fannie Mae Trade Name and Trademarks
  • A3-1-01, Fannie Mae’s Technology Products
  • A3-2-01, Compliance With Laws
  • A3-2-02, Responsible Lending Practices
  • A3-3-01, Outsourcing of Mortgage Processing and Third-Party Originations
  • A3-3-02, Concurrent Servicing Transfers
  • A3-3-03, Other Servicing Arrangements
  • A3-3-04, Document Custodians
  • A3-3-05, Custody of Mortgage Documents
  • A3-4-01, Confidentiality of Information
  • A3-4-02, Data Quality and Integrity
  • A3-4-03, Preventing, Detecting, and Reporting Mortgage Fraud
  • A3-5-01, Fidelity Bond and Errors and Omissions Coverage Provisions
  • A3-5-02, Fidelity Bond Policy Requirements
  • A3-5-03, Errors and Omissions Policy Requirements
  • A3-5-04, Reporting Fidelity Bond and Errors and Omissions Events
  • A4-1-01, Maintaining Seller/Servicer Eligibility
  • A4-1-02, Submission of Financial Statements and Reports
  • A4-1-03, Report of Changes in the Seller/Servicer’s Organization
  • A4-1-04, Submission of Irrevocable Limited Powers of Attorney
  • B1-1-01, Contents of the Application Package
  • B1-1-02, Blanket Authorization Form
  • B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns
  • B2-1.1-01, Occupancy Types
  • B2-1.2-01, Loan-to-Value (LTV) Ratios
  • B2-1.2-02, Combined Loan-to-Value (CLTV) Ratios
  • B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios
  • B2-1.2-04, Subordinate Financing
  • B2-1.3-01, Purchase Transactions
  • B2-1.3-02, Limited Cash-Out Refinance Transactions
  • B2-1.3-03, Cash-Out Refinance Transactions
  • B2-1.3-04, Prohibited Refinancing Practices
  • B2-1.3-05, Payoff of Installment Land Contract Requirements
  • B2-1.4-01, Fixed-Rate Loans
  • B2-1.4-02, Adjustable-Rate Mortgages (ARMs)
  • B2-1.4-03, Convertible ARMs
  • B2-1.4-04, Temporary Interest Rate Buydowns
  • B2-1.5-01, Loan Limits
  • B2-1.5-02, Loan Eligibility
  • B2-1.5-03, Legal Requirements
  • B2-1.5-04, Escrow Accounts
  • B2-1.5-05, Principal Curtailments
  • B2-2-01, General Borrower Eligibility Requirements
  • B2-2-02, Non–U.S. Citizen Borrower Eligibility Requirements
  • B2-2-03, Multiple Financed Properties for the Same Borrower
  • B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the Subject Transaction
  • B2-2-05, Inter Vivos Revocable Trusts
  • B2-2-06, Homeownership Education and Housing Counseling
  • B2-2-07, First-Generation Homebuyer Loans
  • B2-3-01, General Property Eligibility
  • B2-3-02, Special Property Eligibility and Underwriting Considerations: Factory-Built Housing
  • B2-3-03, Special Property Eligibility and Underwriting Considerations: Leasehold Estates
  • B2-3-04, Special Property Eligibility Considerations
  • B2-3-05, Properties Affected by a Disaster
  • B3-1-01, Comprehensive Risk Assessment
  • B3-2-01, General Information on DU
  • B3-2-02, DU Validation Service
  • B3-2-03, Risk Factors Evaluated by DU
  • B3-2-04, DU Documentation Requirements
  • B3-2-05, Approve/Eligible Recommendations
  • B3-2-06, Approve/Ineligible Recommendations
  • B3-2-07, Refer with Caution Recommendations
  • B3-2-08, Out of Scope Recommendations
  • B3-2-09, Erroneous Credit Report Data
  • B3-2-10, Accuracy of DU Data, DU Tolerances, and Errors in the Credit Report
  • B3-2-11, DU Underwriting Findings Report
  • B3-3.1-01, General Income Information
  • B3-3.1-02, Standards for Employment Documentation
  • B3-3.1-03, Base Pay (Salary or Hourly), Bonus, and Overtime Income
  • B3-3.1-04, Commission Income
  • B3-3.1-05, Secondary Employment Income (Second Job and Multiple Jobs) and Seasonal Income
  • B3-3.1-06, Requirements and Uses of IRS IVES Request for Transcript of Tax Return Form 4506-C
  • B3-3.1-07, Verbal Verification of Employment
  • B3-3.1-08, Rental Income
  • B3-3.1-09, Other Sources of Income
  • B3-3.1-10, Income Calculator
  • B3-3.2-01, Underwriting Factors and Documentation for a Self-Employed Borrower
  • B3-3.2-02, Business Structures
  • B3-3.2-03, IRS Forms Quick Reference
  • B3-3.3-01, General Information on Analyzing Individual Tax Returns
  • B3-3.3-02, Income Reported on IRS Form 1040
  • B3-3.3-03, Income or Loss Reported on IRS Form 1040, Schedule C
  • B3-3.3-04, Income or Loss Reported on IRS Form 1040, Schedule D
  • B3-3.3-05, Income or Loss Reported on IRS Form 1040, Schedule E
  • B3-3.3-06, Income or Loss Reported on IRS Form 1040, Schedule F
  • B3-3.3-07, Income or Loss Reported on IRS Form 1065 or IRS Form 1120S, Schedule K-1
  • B3-3.4-01, Analyzing Partnership Returns for a Partnership or LLC
  • B3-3.4-02, Analyzing Returns for an S Corporation
  • B3-3.4-03, Analyzing Returns for a Corporation
  • B3-3.4-04, Analyzing Profit and Loss Statements
  • B3-3.5-01, Income and Employment Documentation for DU
  • B3-3.5-02, Income from Rental Property in DU
  • B3-4.1-01, Minimum Reserve Requirements
  • B3-4.1-02, Interested Party Contributions (IPCs)
  • B3-4.1-03, Types of Interested Party Contributions (IPCs)
  • B3-4.1-04, Virtual Currency
  • B3-4.2-01, Verification of Deposits and Assets
  • B3-4.2-02, Depository Accounts
  • B3-4.2-03, Individual Development Accounts
  • B3-4.2-04, Pooled Savings (Community Savings Funds)
  • B3-4.2-05, Foreign Assets
  • B3-4.3-01, Stocks, Stock Options, Bonds, and Mutual Funds
  • B3-4.3-02, Trust Accounts
  • B3-4.3-03, Retirement Accounts
  • B3-4.3-04, Personal Gifts
  • B3-4.3-05, Gifts of Equity
  • B3-4.3-06, Grants and Lender Contributions
  • B3-4.3-07, Disaster Relief Grants or Loans
  • B3-4.3-08, Employer Assistance
  • B3-4.3-09, Earnest Money Deposit
  • B3-4.3-10, Anticipated Sales Proceeds
  • B3-4.3-11, Trade Equity
  • B3-4.3-12, Rent Credit for Option to Purchase
  • B3-4.3-13, Sweat Equity
  • B3-4.3-14, Bridge/Swing Loans
  • B3-4.3-15, Borrowed Funds Secured by an Asset
  • B3-4.3-16, Credit Card Financing and Reward Points
  • B3-4.3-17, Personal Unsecured Loans
  • B3-4.3-18, Sale of Personal Assets
  • B3-4.3-19, Cash Value of Life Insurance
  • B3-4.3-20, Anticipated Savings and Cash-on-Hand
  • B3-4.3-21, Borrower's Earned Real Estate Commission
  • B3-4.4-01, DU Asset Verification
  • B3-4.4-02, Requirements for Certain Assets in DU
  • B3-5.1-01, General Requirements for Credit Scores
  • B3-5.1-02, Determining the Credit Score for a Mortgage Loan
  • B3-5.2-01, Requirements for Credit Reports
  • B3-5.2-02, Types of Credit Reports
  • B3-5.2-03, Accuracy of Credit Information in a Credit Report
  • B3-5.3-01, Number and Age of Accounts
  • B3-5.3-02, Payment History
  • B3-5.3-03, Previous Mortgage Payment History
  • B3-5.3-04, Inquiries: Recent Attempts to Obtain New Credit
  • B3-5.3-05, Credit Utilization
  • B3-5.3-06, Authorized Users of Credit
  • B3-5.3-07, Significant Derogatory Credit Events — Waiting Periods and Re-establishing Credit
  • B3-5.3-08, Extenuating Circumstances for Derogatory Credit
  • B3-5.3-09, DU Credit Report Analysis
  • B3-5.4-01, Eligibility Requirements for Loans with Nontraditional Credit
  • B3-5.4-02, Number and Types of Nontraditional Credit References
  • B3-5.4-03, Documentation and Assessment of a Nontraditional Credit History
  • B3-6-01, General Information on Liabilities
  • B3-6-02, Debt-to-Income Ratios
  • B3-6-03, Monthly Housing Expense for the Subject Property
  • B3-6-04, Qualifying Payment Requirements
  • B3-6-05, Monthly Debt Obligations
  • B3-6-06, Qualifying Impact of Other Real Estate Owned
  • B3-6-07, Debts Paid Off At or Prior to Closing
  • B3-6-08, DU: Requirements for Liability Assessment
  • B4-1.1-01, Definition of Market Value
  • B4-1.1-02, Lender Responsibilities
  • B4-1.1-03, Appraiser Selection Criteria
  • B4-1.1-04, Unacceptable Appraisal Practices
  • B4-1.1-05, Disclosure of Information to Appraisers
  • B4-1.1-06, Uniform Appraisal Dataset (UAD) and the Uniform Collateral Data Portal (UCDP)
  • B4-1.2-01, Appraisal Report Forms and Exhibits
  • B4-1.2-02, Desktop Appraisals
  • B4-1.2-03, Hybrid Appraisals
  • B4-1.2-04, Appraisal Age and Use Requirements
  • B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements
  • B4-1.3-01, Review of the Appraisal Report
  • B4-1.3-02, Subject and Contract Sections of the Appraisal Report
  • B4-1.3-03, Neighborhood Section of the Appraisal Report
  • B4-1.3-04, Site Section of the Appraisal Report
  • B4-1.3-05, Improvements Section of the Appraisal Report
  • B4-1.3-06, Property Condition and Quality of Construction of the Improvements
  • B4-1.3-07, Sales Comparison Approach Section of the Appraisal Report
  • B4-1.3-08, Comparable Sales
  • B4-1.3-09, Adjustments to Comparable Sales
  • B4-1.3-10, Cost and Income Approach to Value
  • B4-1.3-11, Valuation Analysis and Reconciliation
  • B4-1.3-12, Appraisal Quality Matters
  • B4-1.4-01, Factory-Built Housing: Manufactured Housing
  • B4-1.4-02, Factory-Built Housing: Modular, Prefabricated, Panelized, or Sectional Housing
  • B4-1.4-03, Condo Appraisal Requirements
  • B4-1.4-04, Co-op Appraisal Requirements
  • B4-1.4-05, Leasehold Interests Appraisal Requirements
  • B4-1.4-06, Community Land Trust Appraisal Requirements
  • B4-1.4-07, Mixed-Use Property Appraisal Requirements
  • B4-1.4-08, Environmental Hazards Appraisal Requirements
  • B4-1.4-09, Special Assessment or Community Facilities Districts Appraisal Requirements
  • B4-1.4-10, Value Acceptance (Appraisal Waiver)
  • B4-1.4-11, Value Acceptance + Property Data
  • B4-2.1-01, General Information on Project Standards
  • B4-2.1-02, Waiver of Project Review
  • B4-2.1-03, Ineligible Projects
  • B4-2.1-04, Environmental Hazard Assessments
  • B4-2.1-05, Unacceptable Environmental Hazards
  • B4-2.1-06, Remedial Actions for Environmental Hazard Assessments Below Standards
  • B4-2.2-01, Limited Review Process
  • B4-2.2-02, Full Review Process
  • B4-2.2-03, Full Review: Additional Eligibility Requirements for Units in New and Newly Converted Condo Projects
  • B4-2.2-04, Geographic-Specific Condo Project Considerations
  • B4-2.2-05, FHA-Approved Condo Review Eligibility
  • B4-2.2-06, Project Eligibility Review Service (PERS)
  • B4-2.2-07, Projects with Special Considerations and Project Eligibility Waivers
  • B4-2.3-01, Eligibility Requirements for Units in PUD Projects
  • B4-2.3-02, Co-op Project Eligibility
  • B4-2.3-03, Legal Requirements for Co-op Projects
  • B4-2.3-04, Loan Eligibility for Co-op Share Loans
  • B4-2.3-05, Geographic-Specific Co-op Project Considerations
  • B5-1-01, High-Balance Mortgage Loan Eligibility and Underwriting
  • B5-1-02, High-Balance Pricing, Mortgage Insurance, Special Feature Codes, and Delivery Limitations
  • B5-2-01, Manufactured Housing
  • B5-2-02, Manufactured Housing Loan Eligibility
  • B5-2-03, Manufactured Housing Underwriting Requirements
  • B5-2-04, Manufactured Housing Pricing, Mortgage Insurance, and Loan Delivery Requirements
  • B5-2-05, Manufactured Housing Legal Considerations
  • B5-3.1-01, Conversion of Construction-to-Permanent Financing: Overview
  • B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions
  • B5-3.1-03, Conversion of Construction-to-Permanent Financing: Two-Closing Transactions
  • B5-3.2-01, HomeStyle Renovation Mortgages
  • B5-3.2-02, HomeStyle Renovation Mortgages: Loan and Borrower Eligibility
  • B5-3.2-03, HomeStyle Renovation Mortgages: Collateral Considerations
  • B5-3.2-04, HomeStyle Renovation Mortgages: Costs and Escrow Accounts
  • B5-3.2-05, HomeStyle Renovation Mortgages: Completion Certification
  • B5-3.2-06, HomeStyle Renovation: Renovation Contract, Renovation Loan Agreement, and Lien Waiver
  • B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties
  • B5-3.4-01, Property Assessed Clean Energy Loans
  • B5-4.1-01, Texas Section 50(a)(6) Loans
  • B5-4.1-02, Texas Section 50(a)(6) Loan Eligibility
  • B5-4.1-03, Texas Section 50(a)(6) Loan Underwriting, Collateral, and Closing Considerations
  • B5-4.1-04, Texas Section 50(a)(6) Loan Delivery and Servicing Considerations
  • B5-4.2-01, Native American Conventional Lending Initiative (NACLI)
  • B5-4.2-02, Disaster-Related Limited Cash-Out Refinance Flexibilities
  • B5-4.2-03, Loans Secured by HomePath Properties
  • B5-5.1-01, Community Seconds Loans
  • B5-5.1-02, Community Seconds Loan Eligibility
  • B5-5.1-03, Community Seconds: Shared Appreciation Transactions
  • B5-5.2-01, Loans With Resale Restrictions: General Information
  • B5-5.2-02, Loans with Resale Restrictions: Eligibility, Collateral and Delivery Requirements
  • B5-5.3-01, Shared Equity Overview
  • B5-5.3-02, Shared Equity Transactions: General Requirements
  • B5-5.3-03, Shared Equity Transactions: Eligibility, Underwriting and Collateral Requirements
  • B5-5.3-04, Massachusetts Resale Restriction Loan Eligibility Requirements
  • B5-6-01, HomeReady Mortgage Loan and Borrower Eligibility
  • B5-6-02, HomeReady Mortgage Underwriting Methods and Requirements
  • B5-6-03, HomeReady Mortgage Loan Pricing, Mortgage Insurance, and Special Feature Codes
  • B5-7-01, High LTV Refinance Loan and Borrower Eligibility
  • B5-7-02, High LTV Refinance Underwriting, Documentation, and Collateral Requirements for the New Loan
  • B5-7-03, High LTV Refinance Alternative Qualification Path
  • B5-7-04, High LTV Refinance Representations and Warranties
  • B5-7-05, High LTV Refinance Pricing, Mortgage Insurance, and Special Feature Codes
  • B6-1-01, General Government Mortgage Loan Requirements
  • B6-1-02, Eligible FHA-Insured Mortgage Loans
  • B6-1-03, Eligible VA-Guaranteed Mortgages
  • B6-1-04, Eligible HUD-Guaranteed Section 184 Mortgages
  • B6-1-05, Eligible RD-Guaranteed Mortgages
  • B7-1-01, Provision of Mortgage Insurance
  • B7-1-02, Mortgage Insurance Coverage Requirements
  • B7-1-03, Lender-Purchased Mortgage Insurance
  • B7-1-04, Financed Borrower-Purchased Mortgage Insurance
  • B7-1-05, Government Mortgage Loan Guaranty or Insurance
  • B7-2-01, Provision of Title Insurance
  • B7-2-02, Title Insurer Requirements
  • B7-2-03, General Title Insurance Coverage
  • B7-2-04, Special Title Insurance Coverage Considerations
  • B7-2-05, Title Exceptions and Impediments
  • B7-2-06, Attorney Title Opinion Letter Requirements
  • B7-3-01, General Property Insurance Requirements for All Property Types
  • B7-3-02, Property Insurance Requirements for One-to Four-Unit Properties
  • B7-3-03, Master Property Insurance Requirements for Project Developments
  • B7-3-04, Individual Property Insurance Requirements for a Unit in a Project Development
  • B7-3-05, Additional Insurance Requirements
  • B7-3-06, Flood Insurance Requirements for All Property Types
  • B7-3-07, Evidence of Property Insurance
  • B7-3-08, Mortgagee Clause, Named Insured, and Notice of Cancellation Requirements
  • B7-4-01, General Liability Insurance Requirements for Project Developments
  • B7-4-02, Fidelity/Crime Insurance Requirements for Project Developments
  • B8-1-01, Publication of Legal Documents
  • B8-2-01, Security Instruments for Conventional Mortgages
  • B8-2-02, Special-Purpose Security Instruments
  • B8-2-03, Signature Requirements for Security Instruments
  • B8-3-01, Notes for Conventional Mortgages
  • B8-3-02, Special Note Provisions and Language Requirements
  • B8-3-03, Signature Requirements for Notes
  • B8-3-04, Note Endorsement
  • B8-4-01, Riders and Addenda
  • B8-5-01, General Information on Special-Purpose Legal Documents
  • B8-5-02, Inter Vivos Revocable Trust Mortgage Documentation and Signature Requirements
  • B8-5-03, HomeStyle Renovation Mortgage Documentation Requirements
  • B8-5-04, Sample Legal Documents
  • B8-5-05, Requirements for Use of a Power of Attorney
  • B8-6-01, Authorized Use of Intervening and Blanket Assignments
  • B8-7-01, Mortgage Electronic Registration Systems (MERS), Inc.
  • B8-8-01, General Information on eMortgages
  • B8-8-02, Requirements for Creating, Closing, and Correcting eNotes
  • C1-1-01, Execution Options
  • C1-2-01, General Information on Delivering Loan Data and Documents
  • C1-2-02, Loan Data and Documentation Delivery Requirements
  • C1-2-03, Ownership of Mortgage Loans Prior to Purchase or Securitization and Third-Party Security Interests
  • C1-2-04, Delivering eMortgages to Fannie Mae
  • C1-2-05, Bailee Letters
  • C1-3-01, General Information on Remittance Types
  • C2-1.1-01, Mandatory Commitment Process
  • C2-1.1-02, General Information about Mandatory Commitment Pricing and Fees
  • C2-1.1-03, Mandatory Commitment Terms, Amounts, Periods and Other Requirements
  • C2-1.1-04, Mandatory Commitment Extensions and Pair-Offs
  • C2-1.1-05, Servicing Fees
  • C2-1.1-06, Accrued Interest Payments for Regularly Amortizing Mortgages
  • C2-1.1-07, Standard ARM and Converted ARM Resale Commitments
  • C2-1.2-01, Best Efforts Commitment Process
  • C2-1.2-02, Best Efforts Commitment Pricing, Periods, and Fees
  • C2-1.2-03, Best Efforts Commitment Terms, Amounts, and Other Requirements
  • C2-1.3-01, Servicing Marketplace
  • C2-2-01, General Requirements for Good Delivery of Whole Loans
  • C2-2-02, Documentation Requirements for Whole Loan Deliveries
  • C2-2-03, General Information on Whole Loan Purchasing Policies
  • C2-2-04, Timing of Distribution of Whole Loan Purchase Proceeds
  • C2-2-05, Whole Loan Purchasing Process
  • C2-2-06, Authorization to Transfer Funds
  • C2-2-07, Purchase Payee Codes
  • C3-1-01, General Information About Fannie Mae’s MBS Program
  • C3-1-02, Preparing to Pool Loans into MBS
  • C3-2-01, Determining Eligibility for Loans Pooled into MBS
  • C3-2-02, Selecting a Servicing Option
  • C3-2-03, MBS Remittance Type and Selecting a Remittance Cycle
  • C3-2-04, Mandatory MBS Commitments
  • C3-3-01, Determining and Remitting Guaranty Fees
  • C3-3-02, Accessing Buyup and Buydown Ratios and Calculating Payments or Charges
  • C3-3-03, Buying Up and Buying Down the Guaranty Fee for MBS
  • C3-4-01, Term-Related Fixed-Rate Mortgage Pooling Parameters
  • C3-5-01, Creating Weighted-Average ARM MBS
  • C3-5-02, Calculating the Weighted-Average Pool Accrual Rates for ARM Flex Pools Using a Fixed MBS Margin
  • C3-5-03, Calculating the Weighted-Average Pool Accrual Rates for ARM Flex Pools Using a Weighted-Average MBS Margin
  • C3-5-04, Pooling ARMs with a Conversion Option
  • C3-5-05, Commingling ARMs in MBS
  • C3-6-01, Parameters for Pooling Loans Into Fannie Majors
  • C3-7-01, Establishing an MBS Trading Account
  • C3-7-02, Initiating an MBS Sale
  • C3-7-03, Making Good Delivery
  • C3-7-04, Delivering MBS Pool Data and Documents
  • C3-7-05, Confirming Presettlement Information
  • C3-7-06, Settling the Trade
  • C3-7-07, Sale of Fannie Mae Securities to Third Parties
  • D1-1-01, Lender Quality Control Programs, Plans, and Processes
  • D1-1-02, Lender Quality Control Staffing and Outsourcing of the Quality Control Process
  • D1-2-01, Lender Prefunding Quality Control Review Process
  • D1-3-01, Lender Post-Closing Quality Control Review Process
  • D1-3-02, Lender Post-Closing Quality Control Review of Approval Conditions, Underwriting Decisions, and Documentation
  • D1-3-03, Lender Post-Closing Quality Control Review of Data Integrity
  • D1-3-04, Lender Post-Closing Quality Control Review of Appraisers, Appraisals, Property Data Collectors, and Property Data Collection
  • D1-3-05, Lender Post-Closing Quality Control Review of Closing Documents
  • D1-3-06, Lender Post-Closing Quality Control Reporting, Record Retention, and Audit
  • D2-1-01, General Information on Fannie Mae QC Reviews
  • D2-1-02, Fannie Mae QC File Request and Submission Requirements
  • D2-1-03, Outcomes of Fannie Mae QC Reviews
  • D2-1-04, Identifying and Remedying Origination Defects Under the Remedies Framework
  • E-1-01, References to Fannie Mae's Website
  • E-1-02, List of Contacts
  • E-1-03, List of Lender Contracts
  • E-2-01, Required Custodial Documents
  • E-2-02, Suggested Format for Phase I Environmental Hazard Assessments
  • E-2-03, Revocable Trust Rider (Sample Language)
  • E-2-04, Signature Requirements for Mortgages to Inter Vivos Revocable Trusts
  • E-2-05, Servicing Marketplace — Mortgage Loan Servicing Purchase and Sale Agreement
  • E-2-06, Correcting Errors in eNotes
  • E-2-07, Description of eNote Header, Footer, and eNote Clause
  • E-3-01, Acronyms and Glossary of Defined Terms: A
  • E-3-02, Acronyms and Glossary of Defined Terms: B
  • E-3-03, Acronyms and Glossary of Defined Terms: C
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Tyler Smiarowski's profile image

  • from cedar rapids, iowa
  • Member since Oct 18, 2013
  • cedar rapids, IA

Can you "assign" a contract to a buyer who is using conventional financing?

Just wanted to know if you can assign a contract to a conventional buyer? I assume you can but I hear the term "cash" buyers quite a bit in wholesaling examples. Thanks

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Update: Fannie Mae Guidelines Raise Concerns, Could Bar ACV Coverage for Homes

assignment of contract fannie mae

An updated guideline from Fannie Mae, if it stands, could throw a wrench into the property-casualty insurance industry’s move toward actual cash value for more homeowners and condo coverage.

A Fannie Mae spokesperson said the government-backed mortgage corporation, which supports a large share of the U.S. mortgage market, has clarified a long-standing guideline that requires that insurance polices provide replacement value coverage for most homes with mortgages.

“Fannie Mae’s longstanding Selling Guide policy requires property insurance claims to be settled on a replacement cost basis. Updates made to Fannie Mae’s Selling Guide in December 2022 and February 2024 further clarified that Fannie Mae’s well-established property insurance requirements do not allow claims to be settled on an actual cash value basis, as well as related lender and servicer responsibilities,” the corporation noted.

Freddie Mac, which mostly buys loans from smaller lenders, has also had its replacement-cost requirements in place for years, but early this year reiterated the stand in updated guidelines.

Some in the insurance industry have said the updates appear to mark a new emphasis on replacement coverage and away from ACV. An April 17 letter from the National Association of Mutual Insurance Companies and Big I, the Independent Insurance Agents and Brokers of America, urged the Federal Housing Finance Agency to suspend the changes immediately. The groups warned that the rule will disrupt insureds, insurers and agents already dealing with escalating premiums and capacity issues.

See Follow-up: Fannie and Freddie Hit Pause on Replacement-Value Requirements for Home Insurance

“Requiring, without exception, that all consumers with mortgages owned by Fannie Mae and Freddie Mac obtain full replacement cost coverage will logically, by the very nature of this mandate, exacerbate existing challenges,” the letter reads. “While the GSE guidance is no doubt well-intentioned, it establishes requirements that will have a real-world impact on the many homeowners who are unable to satisfy the coverage requirements or who are forced to purchase a higher-cost insurance product in order to do so.”

assignment of contract fannie mae

Insurance agents would be left in a tough position by such a rule change and would have to inform homeowners that an option to help limit premium spikes is about to be taken off the table, the letter noted. And some property insurers have entire product lines that offer ACV for homes with mortgages, policies that are favored by insureds who may not be able to afford replacement-based premiums, said Jimi Grande, senior vice president for federal and political affairs at NAMIC.

It’s not clear how much of a change the guidelines create, and why the replacement value rules are in place now, in the midst of a hard market and burgeoning loss costs for property insurers. But the NAMIC and Big I letter may have done some good: Federal housing finance officials are expected to announce later this week that they are willing to put a pause on the new guideline and speak with stakeholders.

“We’re thankful. It sounds like FHFA will postpone this rule and let stakeholders come together and talk about it,” said Nathan Riedel, senior vice president for federal government affairs.

Offering actual cash value has been a growing trend around the country in recent years, but especially in Florida and especially for roofs. Insurer advocates have called ACV a simpler, fairer way to cover roofs in the wake of thousands of Florida roof claims that insurers said were fraudulent or exaggerated by some public adjusters, unscrupulous roof contractors, and by some plaintiffs’ lawyers.

Florida lawmakers have repeatedly introduced legislation that would have allowed more policies to cover only the current value of roofs, as opposed to full replacement value, which can add thousands of dollars to the cost and hundreds of dollars to premiums.

“It’s about 25% more expensive to go with replacement value than with ACV,” said Scott Johnson, of Tallahassee, a longtime insurance educator, author and consultant.

Senate Bill 1728, introduced in the Florida Legislature in 2022, came close to allowing more policies to provide only ACV coverage for some homeowner roof claims. The bill passed the Senate that year but died in the House of Representatives.

assignment of contract fannie mae

In 2022, Florida Senate Bill 4D also revised building codes. The codes now no longer require full roof replacements when only part of the roof is damaged. Florida court rulings also have eased the replacement requirement in some cases.

In Kentucky last fall, the state Department of Insurance also weighed in on the issue. It posted an advisory opinion, essentially allowing insurers to avoid full roof replacements if the same type of shingle is used for repairs, even if the new shingles don’t exactly match the old ones in color.

Grande, of NAMIC, speculated that the FHFA may have had good intentions to protect homeowners, but the agency did not consult with enough experts in the insurance world. Perhaps regulatory officials had heard from consumer groups that some people weren’t getting full replacement value from insurers when their homes were damaged, and the agency wanted to help assist residents, Grande noted.

“That’s a nice sentiment but it was horribly ignorant and wrong,” he said. “It’s weird that no one in the food chain caught that before the guidelines were published.”

assignment of contract fannie mae

Removing ACV coverage undermines a choice that many homeowners have embraced as a way to reduce premium increases in recent years, he and Big I’s Riedel pointed out.

A Fannie Mae official said that the clarifications “were intended to help assure borrowers have sufficient property coverage in the event of a loss and promote sustainable homeownership.”

Replacement costs also have been a tricky issue for some insurance agents in recent years. An insurance carrier’s replacement cost estimator tools are often considered proprietary, and Florida statutes and agents’ contracts bar lenders from requiring agents to provide the cost estimators, explained B.G. Murphy with the Florida Association of Insurance Agents.

“The new guidance to sellers/servicers of Fannie/Freddie-backed mortgages will likely reignite this problem for Florida’s independent insurance agents,” Murphy wrote in a blog post last week.

It is unclear the number of homeowners with mortgages in Florida and elsewhere that have opted for actual cash value policies. Florida regulators and officials with the state-created Citizens Property Insurance Corp. could not be reached Monday.

This is not the first time Fannie and Freddie have shaken the Florida housing and insurance markets.

In early 2022, the corporations began requiring lending institutions to evaluate the condition of condominium buildings before approving loans, in the aftermath of the Champlain Towers South collapse that killed 98 people.

A year later, some Florida-domiciled carriers withdrew from the Demotech rating firm’s financial stability rating system. But Freddie Mac caused some consternation when it temporarily delayed approval of another rating firm’s ranking system for insurers.

Likewise, the latest rule change has caused “uncertainty and apprehension” as the rule implementation date approaches, the NAMIC and Big I letter said.

Update: This article was updated May 7, 2024 to include more information from Fannie Mae and Freddie Mac, and to show that the replacement-value guidelines have been in place for a number of years.

Topics Florida

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Written By William Rabb

Rabb is Southeast Editor for Insurance Journal. He is a long-time newspaper man in the Deep South; also covered workers' comp insurance issues for a trade publication for a few years.

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A1-4.1-01, Defining a Breach of Contract (06/21/2017)

Any of the following events constitute a breach of the servicer’s contractual obligations:

The servicer’s failure to comply with any provision of the Lender Contract including, but not limited to, the following:

a failure to establish and maintain satisfactory accounts for the deposit of Fannie Mae’s and borrowers’ funds;

the use of Fannie Mae’s or borrowers’ funds in any manner other than as permitted by this Servicing Guide including, but not limited to

the failure to deposit all funds collected for the mortgage loans into the proper custodial account not later than the first business day following their receipt, or

the failure to remit all funds due Fannie Mae within the required time frames;

the failure to ensure that the servicing-related policies for servicing all Fannie Mae-issued MBS mortgage loan pools (including those PFP) are in compliance with this Servicing Guide and that the mortgage loans in the MBS pools are all serviced in a consistent manner;

the failure to bear the risk of loss from borrower defaults for MBS pools serviced under the regular servicing option;

the failure to maintain adequate and accurate accounting records and mortgage loan servicing records, in accordance with Fannie Mae’s requirements;

the failure to take prompt and diligent action consistent with applicable law to collect sums past due on the mortgage loans or to take any other diligent action that Fannie Mae or acceptable industry practice reasonably requires with respect to mortgage loans that are in default; or

the failure to take diligent action consistent with applicable law to foreclose any mortgage loan that is in default, whether or not resulting from the acts or omissions of a law firm or other person or entity the servicer chooses to effect such foreclosure.

Unacceptable performance as determined by Fannie Mae with regard to the servicer’s compliance with the Lender Contract, including, but not limited, to servicer performance measurements as described in the Servicing Guide , STAR Program results and the requirements of any written performance improvement plan.

The servicer’s insolvency, the adjudication of the servicer as a bankrupt, the appointment of a receiver, the servicer’s execution of a general assignment for the benefit of its creditors, or any change in the servicer’s financial status that, in Fannie Mae’s opinion, materially and adversely affects its ability to provide satisfactory servicing of the mortgage loans (if any of these events should occur, no interest in any mortgage loan or pool of mortgage loans shall be deemed an asset or liability of the servicer’s successors or assigns, nor shall any interest pass by operation of law without Fannie Mae’s consent).

The sale of a majority interest in the servicer or a change in the corporate status or structure of a corporate servicer without Fannie Mae’s prior written consent.

A change in the servicer’s financial or business condition, or in its operations, which, in Fannie Mae’s sole judgment, is material and adverse.

The servicer’s failure to meet Fannie Mae’s standards and requirements for eligible servicers if, in Fannie Mae’s opinion, the failure materially and adversely affects the servicer’s ability to comply with the provisions of the Lender Contract.

The finding by a court of competent jurisdiction that the servicer, or any of its principal officers, has committed an act that constitutes civil fraud, or the conviction of the servicer or its officer(s) for any criminal act that is related to the servicer’s mortgage loan servicing activities, if Fannie Mae believes that such act materially and adversely affects the servicer’s reputation or the reputation or interests of Fannie Mae.

The placement of the servicer on probation or restriction of its activities in any manner by a federal or state government agency that would materially and adversely affect the servicer’s ability to comply with the terms or conditions of the Lender Contract.

Any judgment, order, finding or regulatory action to which the servicer is subject that would materially and adversely affect the servicer’s ability to comply with the terms or conditions of the Lender Contract.

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Servicing Guide

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(Published: May 08 2024 )

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  • Copyright and Preface
  • A1-1-01, Application and Approval of Seller/Servicer
  • A1-1-02, Representation and Warranty Requirements
  • A1-1-03, Evaluating a Servicer’s Performance
  • A1-2-01, Servicer’s Termination of the Lender Contract
  • A1-2-02, Fannie Mae’s Termination of the Lender Contract without Cause
  • A1-3-01, Requirements for Voluntary Repurchase
  • A1-3-02, Fannie Mae-Initiated Repurchases, Indemnifications, Make Whole Payment Requests and Deferred Payment Obligations
  • A1-3-03, Repurchase Obligations Related to Bifurcated Mortgage Loans
  • A1-3-04, Reporting the Repurchase
  • A1-3-05, Redelivering a Mortgage Loan
  • A1-3-06, Automatic Reclassification of MBS Mortgage Loans
  • A1-4.1-01, Defining a Breach of Contract
  • A1-4.1-02, Fannie Mae’s Remedies
  • A1-4.2-01, Compensatory Fees Other Than Delays in the Liquidation Process
  • A1-4.2-02, Compensatory Fees for Delays in the Liquidation Process
  • A2-1-01, General Servicer Duties and Responsibilities
  • A2-1-02, Servicer’s Duties and Responsibilities Related to MBS Mortgage Loans
  • A2-1-03, Servicer's Duties and Responsibilities Related to Mortgage Loans with Resale Restrictions or Shared Equity Transactions
  • A2-1-04, Execution of Legal Documents
  • A2-1-05, Note Holder Status for Legal Proceedings Conducted in the Servicer’s Name
  • A2-1-06, Use of Fannie Mae Trademarks
  • A2-1-07, Subservicing
  • A2-1-08, First Lien Mortgage Loan Requirements
  • A2-1-09, Compliance with Requirements and Laws
  • A2-2-01, Refinance and Lending Practices
  • A2-3-01, Servicer Compensation
  • A2-3-02, Servicing Fees for Portfolio and MBS Mortgage Loans
  • A2-3-03, Yield Differential Adjustments
  • A2-3-04, Late Charges as Compensation
  • A2-3-05, Fees for Certain Servicing Activities
  • A2-3-06, Prepayment Premiums
  • A2-4-01, Quality Control Reviews
  • A2-5-01, Ownership and Retention of Individual Mortgage Loan Files and Records
  • A2-6-01, Custodial Documents
  • A2-7-01, Concurrent Servicing Transfers
  • A2-7-02, Pledge of Servicing Rights and Transfer of Interest in Servicing Income
  • A2-7-03, Post-Delivery Servicing Transfers
  • A2-8-01, Mortgage Electronic Registration System
  • A2-9-01, General Requirements
  • A2-9-02, Special Provision for Puerto Rico
  • A3-1-01, Maintaining Fannie Mae Seller/Servicer Status
  • A4-1-01, Staffing, Training, Procedures, and Quality Control Requirements
  • A4-1-02, Establishing Custodial Bank Accounts
  • A4-1-03, Addressing Borrower Inquiries and Disputes
  • A4-2.1-01, Preventing Defaults and Managing Delinquencies
  • A4-2.1-02, Property Inspection Vendor Management and Oversight
  • A4-2.1-03, Managing Short Sales
  • A4-2.1-04, Establishing Contact with the Borrower
  • A4-2.1-05, Requirements for Collection and Foreclosure Prevention Strategies Unique to Second Lien Mortgage Loans
  • A4-2.1-06, Adverse Action Notification Certification
  • A4-2.1-07, Servicer's Duties and Responsibilities Related to Mortgage Loans with an Outstanding Non-Interest-Bearing Balance
  • A4-2.2-01, Selecting and Retaining Law Firms
  • A4-2.2-02, Law Firm Management and Oversight
  • A4-2.2-03, Prohibition Against Servicer-Specified Vendors for Fannie Mae Referrals, Use of Vendors, and Outsourcing Companies
  • A4-2.2-04, Law Firm Suspensions, Matter Transfers, and Terminations
  • B-1-01, Administering an Escrow Account and Paying Expenses
  • B-2-01, Property Insurance Requirements Applicable to All Property Types
  • B-2-02, Property Insurance Requirements for One- to Four-Unit Properties
  • B-2-03, Master Property Insurance Requirements for Project Developments
  • B-2-04, Individual Property Insurance Requirements for Units in Project Developments
  • B-3-01, Flood Insurance Requirements Applicable to All Property Types
  • B-4-01, Additional Insurance Requirements
  • B-5-01, Insured Loss Events
  • B-5-02, Uninsured Loss Events
  • B-6-01, Lender-Placed Insurance Requirements
  • B-7-01, General Liability Insurance Requirements for Project Developments
  • B-7-02, Fidelity/Crime Insurance Requirements for Project Developments
  • B-8.1-01, Conventional Mortgage Insurance Servicer Responsibilities
  • B-8.1-02, Paying Conventional Mortgage Insurance Premiums
  • B-8.1-03, Replacing Conventional Mortgage Insurance Policies
  • B-8.1-04, Termination of Conventional Mortgage Insurance
  • B-8.2-01, FHA Mortgage Insurance Coverage Requirements
  • B-8.2-02, Conversion of FHA Coinsured Mortgage Loans to Full Insurance
  • B-8.2-03, Termination or Cancellation of FHA Mortgage Insurance and FHA Mortgage Insurance Premium
  • C-1.1-01, Servicer Responsibilities for Processing Mortgage Loan Payments
  • C-1.1-02, Processing Payment Shortages or Funds Received When a Mortgage Loan Modification Is Pending
  • C-1.1-03, Automatically Drafting Payments from the Borrower’s Bank Account
  • C-1.1-04, Accepting Biweekly Payments from Third-Party Payment Contractors
  • C-1.2-01, Processing Additional Principal Payments
  • C-1.2-02, Processing Short Sale Proceeds
  • C-1.2-03, Processing Payments in Full
  • C-1.2-04, Satisfying the Mortgage Loan and Releasing the Lien
  • C-1.2-05, Charging for a Release of Lien
  • C-2.1-01, Responsibilities for ARM Loan Servicing
  • C-2.1-02, Notifying the Borrower Regarding Interest Rate and/or Payment Changes
  • C-2.2-01, Identifying and Disclosing Adjustment Errors
  • C-2.2-02, Assuming Responsibility for Conversion Notice Errors
  • C-2.2-03, Determining Whether to Provide a Refund or Credit for Overcharges
  • C-2.3-01, Processing ARM Conversions to Fixed Rate Mortgage Loans
  • C-2.3-02, Notifying Fannie Mae of Conversions for Portfolio Mortgage Loans
  • C-2.3-03, Repurchasing Converted MBS Mortgage Loans and Redelivering Them to Fannie Mae
  • C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae
  • C-3-02, Remitting Payoff Proceeds
  • C-4.1-01, Notifying Credit Repositories
  • C-4.2-01, Filing IRS Forms
  • C-4.3-01, Servicer Responsibilities Related to Investor Reporting
  • D1-1-01, Evaluating a Request for the Release, or Partial Release, of Property Securing a Mortgage Loan
  • D1-1-02, Evaluating a First Lien Mortgage Loan for Charge-Off and Release of Lien
  • D1-1-03, Evaluating a Second Lien Mortgage Charge-Off
  • D1-2-01, Renovation Mortgage Loans
  • D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower
  • D1-4.1-01, Determining Whether a Transfer of Ownership Is Permitted
  • D1-4.1-02, Allowable Exemptions Due to the Type of Transfer
  • D1-4.1-03, Allowable Exceptions Due to State Law Restrictions (“Window-Period” Mortgage Loans)
  • D1-4.1-04, Transfers of Ownership by Grant Deed
  • D1-4.1-05, Enforcing the Due-on-Sale (or Due-on-Transfer) Provision
  • D1-4.2-01, Conventional Mortgage Loans that Do Not Include a Due-on-Sale (or Due-on-Transfer) Provision
  • D1-4.2-02, Conventional Mortgage Loans That Include a Due- on-Sale (or Due-on-Transfer) Provision
  • D1-4.3-01, Transfers of Ownership on FHA and VA Mortgage Loans
  • D1-4.3-02, Transfers of Ownership on RD Mortgage Loans
  • D1-5-01, Call Options and Cross-Default Provisions
  • D1-6-01, Requesting to Waive Certain Rights under the Mortgage Loan
  • D1-6-02, Handling Notices of Liens, Legal Action, Other Actions Impacting Fannie Mae’s Interest
  • D1-6-03, Handling Property Forfeitures and Seizures
  • D2-1-01, Determining if the Borrower’s Mortgage Payment is in Imminent Default
  • D2-2-01, Achieving Quality Right Party Contact with a Borrower
  • D2-2-02, Outbound Contact Attempt Requirements
  • D2-2-03, Sending a Payment Reminder Notice
  • D2-2-04, Sending a Borrower a Solicitation Package for a Workout Option
  • D2-2-05, Receiving a Borrower Response Package
  • D2-2-06, Sending a Breach or Acceleration Letter
  • D2-2-07, Resolving an Appeal of a Mortgage Loan Modification Trial Period Plan Denial for a Principal Residence
  • D2-2-08, Interviewing Face-to-Face with a Borrower for Certain FHA and HUD Mortgage Loans
  • D2-2-09, Additional Borrower Contact Requirements for the Servicer of a Second Lien Mortgage Loan
  • D2-2-10, Requirements for Performing Property Inspections
  • D2-3.1-01, Determining the Appropriate Workout Option
  • D2-3.1-02, Conditions of a First and Second Lien Mortgage Loan Modification for an MBS Mortgage Loan
  • D2-3.1-03, Working with a Borrower that has a Group Home Mortgage Loan
  • D2-3.1-04, Offering a Workout Option When Also Servicing a Subordinate Lien Mortgage Loan
  • D2-3.1-05, Interacting with Mortgage Assistance Fund Program Providers
  • D2-3.1-06, Notifying Fannie Mae of Lead-Based Paint Citations
  • D2-3.2-01, Forbearance Plan
  • D2-3.2-02, Repayment Plan
  • D2-3.2-03, Government Mortgage Loan Modifications
  • D2-3.2-04, Payment Deferral
  • D2-3.2-05, Disaster Payment Deferral
  • D2-3.2-06, Fannie Mae Flex Modification
  • D2-3.3-01, Fannie Mae Short Sale
  • D2-3.3-02, Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure)
  • D2-3.4-01, Military Indulgence
  • D2-3.4-02, Offering a Mortgage Release (Deed-in-Lieu of Foreclosure) for a Second Lien Mortgage Loan
  • D2-3.4-03, Assignment of a Mortgage Loan to the Insurer or Guarantor
  • D2-3.4-04, Qualifying Mortgage Assumption Workout Option
  • D2-4-01, Reporting a Delinquent Mortgage Loan to Fannie Mae
  • D2-4-02, Reporting a Workout Option to Fannie Mae
  • D2-4-03, Reporting Certain Workout Options to Treasury
  • E-1.1-01, General Requirements for Referring a Mortgage Loan to a Law Firm
  • E-1.1-02, Required Referral Documents
  • E-1.1-03, Required Referral Data
  • E-1.2-01, Timing of the Bankruptcy Referral
  • E-1.2-02, Timing of the Foreclosure Referral for Mortgage Loans Generally
  • E-1.2-03, Timing of the Foreclosure Referral for Second Lien Conventional Mortgage Loans Not Secured by a Principal Residence
  • E-1.2-04, Timing of the Foreclosure Referral for Government Mortgage Loans
  • E-1.3-01, General Servicer Responsibilities for Non-Routine Matters
  • E-1.3-02, Reporting Non-Routine Litigation to Fannie Mae
  • E-1.3-03, Reporting “Legal Filings” to MERS
  • E-2.1-01, General Servicing Requirements for Mortgage Loans Under Bankruptcy Protection
  • E-2.1-02, Confirming Bankruptcy Information
  • E-2.1-03, Suspending Debt Collection Efforts
  • E-2.1-04, Expected Servicer/Attorney Interaction During Bankruptcy Proceedings
  • E-2.1-05, Filing a Notice of Appearance and Sending Proper Notices
  • E-2.1-06, Reviewing Bankruptcy Reorganization Plans
  • E-2.1-07, Preparing and Filing a Proof of Claim
  • E-2.1-08, Monitoring Borrower Payments and Critical Dates
  • E-2.1-09, Identifying Workout Opportunities
  • E-2.1-10, Dealing with Delays in the Bankruptcy Process
  • E-2.1-11, Remitting P&I for MBS Mortgage Loans That Are Part of a Bankruptcy
  • E-2.2-01, Managing Chapter 7 Bankruptcies
  • E-2.2-02, Managing Chapter 11 Bankruptcies
  • E-2.2-03, Managing Chapter 12 Bankruptcies
  • E-2.2-04, Managing Chapter 13 Bankruptcies
  • E-2.3-01, Identifying Abusive Filers
  • E-2.3-02, Addressing Individuals with Fractional Interests in a Security Property
  • E-2.3-03, Handling Cramdowns of the Mortgage Debt
  • E-2.3-04, Bankruptcies Involving Mortgage Loans Secured by Investment Properties
  • E-2.3-05, Bankruptcies Involving Multiple Fannie Mae Mortgage Loans
  • E-2.3-06, Responding to Bankruptcies Identified After Foreclosure Sale
  • E-2.3-07, Cross-Border Insolvency Proceedings
  • E-3.1-01, General Servicing Requirements Related to Foreclosure Proceedings
  • E-3.1-02, Performing Due Diligence Prior to Considering Foreclosure
  • E-3.1-03, Fannie Mae Address for Instruments of Record
  • E-3.1-04, Addressing a Bankruptcy Filed During Active Foreclosure
  • E-3.2-01, Conducting Prereferral Review
  • E-3.2-02, Initiating Foreclosure Proceedings on a First Lien Conventional Mortgage Loan
  • E-3.2-03, Initiating Foreclosure Proceedings on a Second Lien Conventional Mortgage Loan
  • E-3.2-04, Postponing Foreclosure Referral for Mortgage Loans Not Secured by a Principal Residence
  • E-3.2-05, Expected Servicer/Attorney Interaction During Foreclosure Proceedings
  • E-3.2-06, Conducting Borrower Outreach During Foreclosure
  • E-3.2-07, Impact of Engagement with a Mortgage Assistance Fund Program Provider
  • E-3.2-08, Processing Reinstatements During Foreclosure
  • E-3.2-09, Conducting Foreclosure Proceedings
  • E-3.2-10, Paying Certain Expenses During the Foreclosure Process
  • E-3.2-11, Collecting Under an Assignment of Rents
  • E-3.2-12, Performing Property Preservation During Foreclosure Proceedings
  • E-3.2-13, Addressing Title Defects Generally
  • E-3.2-14, Addressing Title Defects for Bifurcated Mortgage Loans
  • E-3.2-15, Allowable Time Frames for Completing Foreclosure
  • E-3.3-01, Completing Preforeclosure Sale Review
  • E-3.3-02, Certifying the Status of Workout Negotiations Prior to Foreclosure Sale
  • E-3.3-03, Inspecting Properties Prior to Foreclosure Sale
  • E-3.3-04, Marketing the Foreclosure Sale and Using Foreclosure Auction Services
  • E-3.3-05, Issuing Bidding Instructions
  • E-3.3-06, Handling a Suspension or Reduction of the Redemption Period
  • E-3.3-07, Pursuing a Deficiency Judgment
  • E-3.4-01, Suspending Foreclosure Proceedings for Workout Negotiations
  • E-3.4-02, Canceling the Foreclosure Sale for a Completed Workout
  • E-3.5-01, Foreclosure of a Property Securing an MBS Mortgage Loan
  • E-3.5-02, Handling Third-Party Sales
  • E-3.5-03, Providing Evidence of Title
  • E-4.1-01, Notifying Fannie Mae of an Acquired Property
  • E-4.1-02, Eliminations and Rescissions of Foreclosure Sales
  • E-4.2-01, Completing Conveyance Documents
  • E-4.2-02, Handling Reconveyance to the Insurer or Guarantor
  • E-4.3-01, Managing the Property Post-Foreclosure Sale
  • E-4.3-02, Inspecting Properties Post-Foreclosure Sale
  • E-4.3-03, The Broker's, Agent's, or Property Management Company's Responsibilities
  • E-4.3-04, Handling Eviction Proceedings
  • E-4.4-01, Continuing or Canceling Property Insurance Coverage
  • E-4.4-02, Remitting Property Insurance Settlement Proceeds or Unearned Premium Refunds
  • E-4.4-03, Canceling Flood Insurance Coverage for Acquired Properties
  • E-4.4-04, Remitting Flood Insurance Settlement Proceeds or Unearned Premium Refunds
  • E-4.5-01, Filing MI Claims for Conventional Mortgage Loans or for Other Mortgage Loans for which Fannie Mae Bears the Risk of Loss
  • E-4.5-02, Filing MI Claims for FHA Mortgage Loans
  • E-4.5-03, Filing MI Claims for FHA Coinsured Mortgage Loans
  • E-4.5-04, Filing MI Claims for FHA Title I Loans
  • E-4.5-05, Filing MI Claims for HUD Section 184 Mortgage Loans
  • E-4.5-06, Filing MI Claims for VA Mortgage Loans
  • E-4.5-07, Filing MI Claims for RD Mortgage Loans
  • E-5-01, Requesting Reimbursement for Expenses
  • E-5-02, Servicer Responsibilities Prior to Requesting Reimbursement of Attorney Fees and Costs
  • E-5-03, Allowable Bankruptcy Fees
  • E-5-04, Allowable Foreclosure Fees
  • E-5-05, Reimbursing Law Firms/Reimbursement of Uncollected Fees, Costs or Advances
  • E-5-06, Technology Fees and Electronic Invoicing
  • E-5-07, Other Reimbursable Default-Related Legal Expenses
  • F-1-01, Servicing ARM Loans
  • F-1-02, Escrow, Taxes, Assessments, and Insurance
  • F-1-03, Establishing and Implementing Custodial Accounts
  • F-1-04, Evaluating a Request for the Release, or Partial Release, of Property Securing a Mortgage Loan
  • F-1-05, Expense Reimbursement
  • F-1-06, Filing an MI Claim for a Liquidated Mortgage Loan or Acquired Property
  • F-1-07, Handling Property Forfeitures and Seizures
  • F-1-08, Managing Foreclosure Proceedings
  • F-1-09, Processing Mortgage Loan Payments and Payoffs
  • F-1-10, Obtaining and Executing Legal Documents
  • F-1-11, Post-Delivery Servicing Transfers
  • F-1-12, Preparing to Implement a Workout Option
  • F-1-13, Processing a Fannie Mae Mortgage Release (Deed-In-Lieu of Foreclosure)
  • F-1-14, Processing a Fannie Mae Short Sale
  • F-1-15, Processing a Government Mortgage Loan Modification
  • F-1-16, Processing a Repayment Plan
  • F-1-17, Processing a Transfer of Ownership
  • F-1-18, Processing a Workout Incentive Fee
  • F-1-19, Processing a Military Indulgence
  • F-1-20, Remitting and Accounting to Fannie Mae
  • F-1-21, Reporting a Delinquent Mortgage Loan via Fannie Mae’s Servicing Solutions System
  • F-1-22, Reporting a Workout Option via Fannie Mae’s Servicing Solutions System
  • F-1-23, Reporting to Third Parties
  • F-1-24, Requesting Fannie Mae’s Approval via Fannie Mae’s Servicing Solutions System
  • F-1-25, Reclassifying or Voluntary Repurchasing an MBS Mortgage Loan
  • F-1-26, Servicing eMortgages
  • F-1-27, Processing a Fannie Mae Flex Modification
  • F-1-28, Reviewing a Transfer of Ownership for Credit and Financial Capacity
  • F-2-01, Bankruptcy Referral and Completion Timelines
  • F-2-02, Incentive Fees for Workout Options
  • F-2-03, Compensatory Fee Calculation Examples
  • F-2-04, Firm Minimum Requirements
  • F-2-05, Historical Yield Differential Adjustment Provisions
  • F-2-06, Mortgage Insurer Delegations for Workout Options
  • F-2-07, Reporting the Principal Amount for Mortgage Loans with Principal Forbearance
  • F-2-08, Servicing Fees for MBS Mortgage Loans
  • F-2-09, Servicing Fees for Portfolio Mortgage Loans
  • F-2-10, Fannie Mae’s Workout Hierarchy
  • F-3-01, Acronyms and Glossary of Defined Terms: A
  • F-3-02, Acronyms and Glossary of Defined Terms: B
  • F-3-03, Acronyms and Glossary of Defined Terms: C
  • F-3-04, Acronyms and Glossary of Defined Terms: D
  • F-3-05, Acronyms and Glossary of Defined Terms: E
  • F-3-06, Acronyms and Glossary of Defined Terms: F
  • F-3-07, Acronyms and Glossary of Defined Terms: G
  • F-3-08, Acronyms and Glossary of Defined Terms: H
  • F-3-09, Acronyms and Glossary of Defined Terms: I
  • F-3-10, Acronyms and Glossary of Defined Terms: J
  • F-3-11, Acronyms and Glossary of Defined Terms: K
  • F-3-12, Acronyms and Glossary of Defined Terms: L
  • F-3-13, Acronyms and Glossary of Defined Terms: M
  • F-3-14, Acronyms and Glossary of Defined Terms: N
  • F-3-15, Acronyms and Glossary of Defined Terms: O
  • F-3-16, Acronyms and Glossary of Defined Terms: P
  • F-3-17, Acronyms and Glossary of Defined Terms: Q
  • F-3-18, Acronyms and Glossary of Defined Terms: R
  • F-3-19, Acronyms and Glossary of Defined Terms: S
  • F-3-20, Acronyms and Glossary of Defined Terms: T
  • F-3-21, Acronyms and Glossary of Defined Terms: U
  • F-3-22, Acronyms and Glossary of Defined Terms: V
  • F-3-23, Acronyms and Glossary of Defined Terms: W
  • F-3-24, Acronyms and Glossary of Defined Terms: X
  • F-3-25, Acronyms and Glossary of Defined Terms: Y
  • F-3-26, Acronyms and Glossary of Defined Terms: Z
  • F-4-01, References to Fannie Mae's Website
  • F-4-02, List of Contacts
  • F-4-03, List of Lender Contracts

F-1-02, Escrow, Taxes, Assessments, and Insurance (12/20/2023)

Instructing mortgage insurers to release data, notifying fannie mae of mortgage insurance rescissions, claim denials, or cancellations, ordering property values for mortgage insurance termination.

The servicer must provide instructions as required for an MI company to release information to Fannie Mae in accordance with  B-8.1-01, Conventional Mortgage Insurance Servicer Responsibilities B-8.1-01, Conventional Mortgage Insurance Servicer Responsibilities .

The following table provides steps the servicer must follow when instructing the MI company to release details to Fannie Mae.

The servicer must notify Fannie Mae of MI rescissions, claim denials, or cancellations for all mortgage loans in accordance with  B-8.1-01, Conventional Mortgage Insurance Servicer Responsibilities B-8.1-01, Conventional Mortgage Insurance Servicer Responsibilities .

The following table provides steps the servicer must follow for notifying Fannie Mae of MI rescissions, claim denials, or cancellations.

Note : Notification for active and liquidated mortgage loans must include the Fannie Mae and servicer loan numbers and a description of the rescission, mortgage insurer-initiated cancellation, or claim denial.

The servicer must cancel borrower-purchased MI at the request of the borrower in accordance with Borrower-Initiated Termination of Conventional Mortgage Insurance Based on Original Value of the Property or Borrower-Initiated Termination of Conventional Mortgage Insurance Based on Current Value of the Property, as applicable in  B-8.1-04, Termination of Conventional Mortgage Insurance B-8.1-04, Termination of Conventional Mortgage Insurance .

On one-unit properties, the servicer must order an interior and exterior BPO, or appraisal if the servicer determines it is required by law, using Fannie Mae's servicing solutions system. On two- to four- unit properties, the servicer must order an interior and exterior appraisal using Fannie Mae's servicing solutions system.

The BPO or appraisal to determine the current value of the property is at the expense of the borrower and the servicer must only order the valuation after the servicer receives the applicable fee. The borrower must be charged the cost of the BPO or appraisal based on the following table.

If the borrower is requesting MI termination based on current value of the property because of property improvements made by the borrower since origination, the servicer must include details provided by the borrower of the property improvements to Fannie Mae.

The table below provides references to recently issued Announcements that are related to this topic.

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Servicing Guide

assignment of contract fannie mae

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(Published: May 08 2024 )

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  • Copyright and Preface
  • A1-1-01, Application and Approval of Seller/Servicer
  • A1-1-02, Representation and Warranty Requirements
  • A1-1-03, Evaluating a Servicer’s Performance
  • A1-2-01, Servicer’s Termination of the Lender Contract
  • A1-2-02, Fannie Mae’s Termination of the Lender Contract without Cause
  • A1-3-01, Requirements for Voluntary Repurchase
  • A1-3-02, Fannie Mae-Initiated Repurchases, Indemnifications, Make Whole Payment Requests and Deferred Payment Obligations
  • A1-3-03, Repurchase Obligations Related to Bifurcated Mortgage Loans
  • A1-3-04, Reporting the Repurchase
  • A1-3-05, Redelivering a Mortgage Loan
  • A1-3-06, Automatic Reclassification of MBS Mortgage Loans
  • A1-4.1-01, Defining a Breach of Contract
  • A1-4.1-02, Fannie Mae’s Remedies
  • A1-4.2-01, Compensatory Fees Other Than Delays in the Liquidation Process
  • A1-4.2-02, Compensatory Fees for Delays in the Liquidation Process
  • A2-1-01, General Servicer Duties and Responsibilities
  • A2-1-02, Servicer’s Duties and Responsibilities Related to MBS Mortgage Loans
  • A2-1-03, Servicer's Duties and Responsibilities Related to Mortgage Loans with Resale Restrictions or Shared Equity Transactions
  • A2-1-04, Execution of Legal Documents
  • A2-1-05, Note Holder Status for Legal Proceedings Conducted in the Servicer’s Name
  • A2-1-06, Use of Fannie Mae Trademarks
  • A2-1-07, Subservicing
  • A2-1-08, First Lien Mortgage Loan Requirements
  • A2-1-09, Compliance with Requirements and Laws
  • A2-2-01, Refinance and Lending Practices
  • A2-3-01, Servicer Compensation
  • A2-3-02, Servicing Fees for Portfolio and MBS Mortgage Loans
  • A2-3-03, Yield Differential Adjustments
  • A2-3-04, Late Charges as Compensation
  • A2-3-05, Fees for Certain Servicing Activities
  • A2-3-06, Prepayment Premiums
  • A2-4-01, Quality Control Reviews
  • A2-5-01, Ownership and Retention of Individual Mortgage Loan Files and Records
  • A2-6-01, Custodial Documents
  • A2-7-01, Concurrent Servicing Transfers
  • A2-7-02, Pledge of Servicing Rights and Transfer of Interest in Servicing Income
  • A2-7-03, Post-Delivery Servicing Transfers
  • A2-8-01, Mortgage Electronic Registration System
  • A2-9-01, General Requirements
  • A2-9-02, Special Provision for Puerto Rico
  • A3-1-01, Maintaining Fannie Mae Seller/Servicer Status
  • A4-1-01, Staffing, Training, Procedures, and Quality Control Requirements
  • A4-1-02, Establishing Custodial Bank Accounts
  • A4-1-03, Addressing Borrower Inquiries and Disputes
  • A4-2.1-01, Preventing Defaults and Managing Delinquencies
  • A4-2.1-02, Property Inspection Vendor Management and Oversight
  • A4-2.1-03, Managing Short Sales
  • A4-2.1-04, Establishing Contact with the Borrower
  • A4-2.1-05, Requirements for Collection and Foreclosure Prevention Strategies Unique to Second Lien Mortgage Loans
  • A4-2.1-06, Adverse Action Notification Certification
  • A4-2.1-07, Servicer's Duties and Responsibilities Related to Mortgage Loans with an Outstanding Non-Interest-Bearing Balance
  • A4-2.2-01, Selecting and Retaining Law Firms
  • A4-2.2-02, Law Firm Management and Oversight
  • A4-2.2-03, Prohibition Against Servicer-Specified Vendors for Fannie Mae Referrals, Use of Vendors, and Outsourcing Companies
  • A4-2.2-04, Law Firm Suspensions, Matter Transfers, and Terminations
  • B-1-01, Administering an Escrow Account and Paying Expenses
  • B-2-01, Property Insurance Requirements Applicable to All Property Types
  • B-2-02, Property Insurance Requirements for One- to Four-Unit Properties
  • B-2-03, Master Property Insurance Requirements for Project Developments
  • B-2-04, Individual Property Insurance Requirements for Units in Project Developments
  • B-3-01, Flood Insurance Requirements Applicable to All Property Types
  • B-4-01, Additional Insurance Requirements
  • B-5-01, Insured Loss Events
  • B-5-02, Uninsured Loss Events
  • B-6-01, Lender-Placed Insurance Requirements
  • B-7-01, General Liability Insurance Requirements for Project Developments
  • B-7-02, Fidelity/Crime Insurance Requirements for Project Developments
  • B-8.1-01, Conventional Mortgage Insurance Servicer Responsibilities
  • B-8.1-02, Paying Conventional Mortgage Insurance Premiums
  • B-8.1-03, Replacing Conventional Mortgage Insurance Policies
  • B-8.1-04, Termination of Conventional Mortgage Insurance
  • B-8.2-01, FHA Mortgage Insurance Coverage Requirements
  • B-8.2-02, Conversion of FHA Coinsured Mortgage Loans to Full Insurance
  • B-8.2-03, Termination or Cancellation of FHA Mortgage Insurance and FHA Mortgage Insurance Premium
  • C-1.1-01, Servicer Responsibilities for Processing Mortgage Loan Payments
  • C-1.1-02, Processing Payment Shortages or Funds Received When a Mortgage Loan Modification Is Pending
  • C-1.1-03, Automatically Drafting Payments from the Borrower’s Bank Account
  • C-1.1-04, Accepting Biweekly Payments from Third-Party Payment Contractors
  • C-1.2-01, Processing Additional Principal Payments
  • C-1.2-02, Processing Short Sale Proceeds
  • C-1.2-03, Processing Payments in Full
  • C-1.2-04, Satisfying the Mortgage Loan and Releasing the Lien
  • C-1.2-05, Charging for a Release of Lien
  • C-2.1-01, Responsibilities for ARM Loan Servicing
  • C-2.1-02, Notifying the Borrower Regarding Interest Rate and/or Payment Changes
  • C-2.2-01, Identifying and Disclosing Adjustment Errors
  • C-2.2-02, Assuming Responsibility for Conversion Notice Errors
  • C-2.2-03, Determining Whether to Provide a Refund or Credit for Overcharges
  • C-2.3-01, Processing ARM Conversions to Fixed Rate Mortgage Loans
  • C-2.3-02, Notifying Fannie Mae of Conversions for Portfolio Mortgage Loans
  • C-2.3-03, Repurchasing Converted MBS Mortgage Loans and Redelivering Them to Fannie Mae
  • C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae
  • C-3-02, Remitting Payoff Proceeds
  • C-4.1-01, Notifying Credit Repositories
  • C-4.2-01, Filing IRS Forms
  • C-4.3-01, Servicer Responsibilities Related to Investor Reporting
  • D1-1-01, Evaluating a Request for the Release, or Partial Release, of Property Securing a Mortgage Loan
  • D1-1-02, Evaluating a First Lien Mortgage Loan for Charge-Off and Release of Lien
  • D1-1-03, Evaluating a Second Lien Mortgage Charge-Off
  • D1-2-01, Renovation Mortgage Loans
  • D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower
  • D1-4.1-01, Determining Whether a Transfer of Ownership Is Permitted
  • D1-4.1-02, Allowable Exemptions Due to the Type of Transfer
  • D1-4.1-03, Allowable Exceptions Due to State Law Restrictions (“Window-Period” Mortgage Loans)
  • D1-4.1-04, Transfers of Ownership by Grant Deed
  • D1-4.1-05, Enforcing the Due-on-Sale (or Due-on-Transfer) Provision
  • D1-4.2-01, Conventional Mortgage Loans that Do Not Include a Due-on-Sale (or Due-on-Transfer) Provision
  • D1-4.2-02, Conventional Mortgage Loans That Include a Due- on-Sale (or Due-on-Transfer) Provision
  • D1-4.3-01, Transfers of Ownership on FHA and VA Mortgage Loans
  • D1-4.3-02, Transfers of Ownership on RD Mortgage Loans
  • D1-5-01, Call Options and Cross-Default Provisions
  • D1-6-01, Requesting to Waive Certain Rights under the Mortgage Loan
  • D1-6-02, Handling Notices of Liens, Legal Action, Other Actions Impacting Fannie Mae’s Interest
  • D1-6-03, Handling Property Forfeitures and Seizures
  • D2-1-01, Determining if the Borrower’s Mortgage Payment is in Imminent Default
  • D2-2-01, Achieving Quality Right Party Contact with a Borrower
  • D2-2-02, Outbound Contact Attempt Requirements
  • D2-2-03, Sending a Payment Reminder Notice
  • D2-2-04, Sending a Borrower a Solicitation Package for a Workout Option
  • D2-2-05, Receiving a Borrower Response Package
  • D2-2-06, Sending a Breach or Acceleration Letter
  • D2-2-07, Resolving an Appeal of a Mortgage Loan Modification Trial Period Plan Denial for a Principal Residence
  • D2-2-08, Interviewing Face-to-Face with a Borrower for Certain FHA and HUD Mortgage Loans
  • D2-2-09, Additional Borrower Contact Requirements for the Servicer of a Second Lien Mortgage Loan
  • D2-2-10, Requirements for Performing Property Inspections
  • D2-3.1-01, Determining the Appropriate Workout Option
  • D2-3.1-02, Conditions of a First and Second Lien Mortgage Loan Modification for an MBS Mortgage Loan
  • D2-3.1-03, Working with a Borrower that has a Group Home Mortgage Loan
  • D2-3.1-04, Offering a Workout Option When Also Servicing a Subordinate Lien Mortgage Loan
  • D2-3.1-05, Interacting with Mortgage Assistance Fund Program Providers
  • D2-3.1-06, Notifying Fannie Mae of Lead-Based Paint Citations
  • D2-3.2-01, Forbearance Plan
  • D2-3.2-02, Repayment Plan
  • D2-3.2-03, Government Mortgage Loan Modifications
  • D2-3.2-04, Payment Deferral
  • D2-3.2-05, Disaster Payment Deferral
  • D2-3.2-06, Fannie Mae Flex Modification
  • D2-3.3-01, Fannie Mae Short Sale
  • D2-3.3-02, Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure)
  • D2-3.4-01, Military Indulgence
  • D2-3.4-02, Offering a Mortgage Release (Deed-in-Lieu of Foreclosure) for a Second Lien Mortgage Loan
  • D2-3.4-03, Assignment of a Mortgage Loan to the Insurer or Guarantor
  • D2-3.4-04, Qualifying Mortgage Assumption Workout Option
  • D2-4-01, Reporting a Delinquent Mortgage Loan to Fannie Mae
  • D2-4-02, Reporting a Workout Option to Fannie Mae
  • D2-4-03, Reporting Certain Workout Options to Treasury
  • E-1.1-01, General Requirements for Referring a Mortgage Loan to a Law Firm
  • E-1.1-02, Required Referral Documents
  • E-1.1-03, Required Referral Data
  • E-1.2-01, Timing of the Bankruptcy Referral
  • E-1.2-02, Timing of the Foreclosure Referral for Mortgage Loans Generally
  • E-1.2-03, Timing of the Foreclosure Referral for Second Lien Conventional Mortgage Loans Not Secured by a Principal Residence
  • E-1.2-04, Timing of the Foreclosure Referral for Government Mortgage Loans
  • E-1.3-01, General Servicer Responsibilities for Non-Routine Matters
  • E-1.3-02, Reporting Non-Routine Litigation to Fannie Mae
  • E-1.3-03, Reporting “Legal Filings” to MERS
  • E-2.1-01, General Servicing Requirements for Mortgage Loans Under Bankruptcy Protection
  • E-2.1-02, Confirming Bankruptcy Information
  • E-2.1-03, Suspending Debt Collection Efforts
  • E-2.1-04, Expected Servicer/Attorney Interaction During Bankruptcy Proceedings
  • E-2.1-05, Filing a Notice of Appearance and Sending Proper Notices
  • E-2.1-06, Reviewing Bankruptcy Reorganization Plans
  • E-2.1-07, Preparing and Filing a Proof of Claim
  • E-2.1-08, Monitoring Borrower Payments and Critical Dates
  • E-2.1-09, Identifying Workout Opportunities
  • E-2.1-10, Dealing with Delays in the Bankruptcy Process
  • E-2.1-11, Remitting P&I for MBS Mortgage Loans That Are Part of a Bankruptcy
  • E-2.2-01, Managing Chapter 7 Bankruptcies
  • E-2.2-02, Managing Chapter 11 Bankruptcies
  • E-2.2-03, Managing Chapter 12 Bankruptcies
  • E-2.2-04, Managing Chapter 13 Bankruptcies
  • E-2.3-01, Identifying Abusive Filers
  • E-2.3-02, Addressing Individuals with Fractional Interests in a Security Property
  • E-2.3-03, Handling Cramdowns of the Mortgage Debt
  • E-2.3-04, Bankruptcies Involving Mortgage Loans Secured by Investment Properties
  • E-2.3-05, Bankruptcies Involving Multiple Fannie Mae Mortgage Loans
  • E-2.3-06, Responding to Bankruptcies Identified After Foreclosure Sale
  • E-2.3-07, Cross-Border Insolvency Proceedings
  • E-3.1-01, General Servicing Requirements Related to Foreclosure Proceedings
  • E-3.1-02, Performing Due Diligence Prior to Considering Foreclosure
  • E-3.1-03, Fannie Mae Address for Instruments of Record
  • E-3.1-04, Addressing a Bankruptcy Filed During Active Foreclosure
  • E-3.2-01, Conducting Prereferral Review
  • E-3.2-02, Initiating Foreclosure Proceedings on a First Lien Conventional Mortgage Loan
  • E-3.2-03, Initiating Foreclosure Proceedings on a Second Lien Conventional Mortgage Loan
  • E-3.2-04, Postponing Foreclosure Referral for Mortgage Loans Not Secured by a Principal Residence
  • E-3.2-05, Expected Servicer/Attorney Interaction During Foreclosure Proceedings
  • E-3.2-06, Conducting Borrower Outreach During Foreclosure
  • E-3.2-07, Impact of Engagement with a Mortgage Assistance Fund Program Provider
  • E-3.2-08, Processing Reinstatements During Foreclosure
  • E-3.2-09, Conducting Foreclosure Proceedings
  • E-3.2-10, Paying Certain Expenses During the Foreclosure Process
  • E-3.2-11, Collecting Under an Assignment of Rents
  • E-3.2-12, Performing Property Preservation During Foreclosure Proceedings
  • E-3.2-13, Addressing Title Defects Generally
  • E-3.2-14, Addressing Title Defects for Bifurcated Mortgage Loans
  • E-3.2-15, Allowable Time Frames for Completing Foreclosure
  • E-3.3-01, Completing Preforeclosure Sale Review
  • E-3.3-02, Certifying the Status of Workout Negotiations Prior to Foreclosure Sale
  • E-3.3-03, Inspecting Properties Prior to Foreclosure Sale
  • E-3.3-04, Marketing the Foreclosure Sale and Using Foreclosure Auction Services
  • E-3.3-05, Issuing Bidding Instructions
  • E-3.3-06, Handling a Suspension or Reduction of the Redemption Period
  • E-3.3-07, Pursuing a Deficiency Judgment
  • E-3.4-01, Suspending Foreclosure Proceedings for Workout Negotiations
  • E-3.4-02, Canceling the Foreclosure Sale for a Completed Workout
  • E-3.5-01, Foreclosure of a Property Securing an MBS Mortgage Loan
  • E-3.5-02, Handling Third-Party Sales
  • E-3.5-03, Providing Evidence of Title
  • E-4.1-01, Notifying Fannie Mae of an Acquired Property
  • E-4.1-02, Eliminations and Rescissions of Foreclosure Sales
  • E-4.2-01, Completing Conveyance Documents
  • E-4.2-02, Handling Reconveyance to the Insurer or Guarantor
  • E-4.3-01, Managing the Property Post-Foreclosure Sale
  • E-4.3-02, Inspecting Properties Post-Foreclosure Sale
  • E-4.3-03, The Broker's, Agent's, or Property Management Company's Responsibilities
  • E-4.3-04, Handling Eviction Proceedings
  • E-4.4-01, Continuing or Canceling Property Insurance Coverage
  • E-4.4-02, Remitting Property Insurance Settlement Proceeds or Unearned Premium Refunds
  • E-4.4-03, Canceling Flood Insurance Coverage for Acquired Properties
  • E-4.4-04, Remitting Flood Insurance Settlement Proceeds or Unearned Premium Refunds
  • E-4.5-01, Filing MI Claims for Conventional Mortgage Loans or for Other Mortgage Loans for which Fannie Mae Bears the Risk of Loss
  • E-4.5-02, Filing MI Claims for FHA Mortgage Loans
  • E-4.5-03, Filing MI Claims for FHA Coinsured Mortgage Loans
  • E-4.5-04, Filing MI Claims for FHA Title I Loans
  • E-4.5-05, Filing MI Claims for HUD Section 184 Mortgage Loans
  • E-4.5-06, Filing MI Claims for VA Mortgage Loans
  • E-4.5-07, Filing MI Claims for RD Mortgage Loans
  • E-5-01, Requesting Reimbursement for Expenses
  • E-5-02, Servicer Responsibilities Prior to Requesting Reimbursement of Attorney Fees and Costs
  • E-5-03, Allowable Bankruptcy Fees
  • E-5-04, Allowable Foreclosure Fees
  • E-5-05, Reimbursing Law Firms/Reimbursement of Uncollected Fees, Costs or Advances
  • E-5-06, Technology Fees and Electronic Invoicing
  • E-5-07, Other Reimbursable Default-Related Legal Expenses
  • F-1-01, Servicing ARM Loans
  • F-1-02, Escrow, Taxes, Assessments, and Insurance
  • F-1-03, Establishing and Implementing Custodial Accounts
  • F-1-04, Evaluating a Request for the Release, or Partial Release, of Property Securing a Mortgage Loan
  • F-1-05, Expense Reimbursement
  • F-1-06, Filing an MI Claim for a Liquidated Mortgage Loan or Acquired Property
  • F-1-07, Handling Property Forfeitures and Seizures
  • F-1-08, Managing Foreclosure Proceedings
  • F-1-09, Processing Mortgage Loan Payments and Payoffs
  • F-1-10, Obtaining and Executing Legal Documents
  • F-1-11, Post-Delivery Servicing Transfers
  • F-1-12, Preparing to Implement a Workout Option
  • F-1-13, Processing a Fannie Mae Mortgage Release (Deed-In-Lieu of Foreclosure)
  • F-1-14, Processing a Fannie Mae Short Sale
  • F-1-15, Processing a Government Mortgage Loan Modification
  • F-1-16, Processing a Repayment Plan
  • F-1-17, Processing a Transfer of Ownership
  • F-1-18, Processing a Workout Incentive Fee
  • F-1-19, Processing a Military Indulgence
  • F-1-20, Remitting and Accounting to Fannie Mae
  • F-1-21, Reporting a Delinquent Mortgage Loan via Fannie Mae’s Servicing Solutions System
  • F-1-22, Reporting a Workout Option via Fannie Mae’s Servicing Solutions System
  • F-1-23, Reporting to Third Parties
  • F-1-24, Requesting Fannie Mae’s Approval via Fannie Mae’s Servicing Solutions System
  • F-1-25, Reclassifying or Voluntary Repurchasing an MBS Mortgage Loan
  • F-1-26, Servicing eMortgages
  • F-1-27, Processing a Fannie Mae Flex Modification
  • F-1-28, Reviewing a Transfer of Ownership for Credit and Financial Capacity
  • F-2-01, Bankruptcy Referral and Completion Timelines
  • F-2-02, Incentive Fees for Workout Options
  • F-2-03, Compensatory Fee Calculation Examples
  • F-2-04, Firm Minimum Requirements
  • F-2-05, Historical Yield Differential Adjustment Provisions
  • F-2-06, Mortgage Insurer Delegations for Workout Options
  • F-2-07, Reporting the Principal Amount for Mortgage Loans with Principal Forbearance
  • F-2-08, Servicing Fees for MBS Mortgage Loans
  • F-2-09, Servicing Fees for Portfolio Mortgage Loans
  • F-2-10, Fannie Mae’s Workout Hierarchy
  • F-3-01, Acronyms and Glossary of Defined Terms: A
  • F-3-02, Acronyms and Glossary of Defined Terms: B
  • F-3-03, Acronyms and Glossary of Defined Terms: C
  • F-3-04, Acronyms and Glossary of Defined Terms: D
  • F-3-05, Acronyms and Glossary of Defined Terms: E
  • F-3-06, Acronyms and Glossary of Defined Terms: F
  • F-3-07, Acronyms and Glossary of Defined Terms: G
  • F-3-08, Acronyms and Glossary of Defined Terms: H
  • F-3-09, Acronyms and Glossary of Defined Terms: I
  • F-3-10, Acronyms and Glossary of Defined Terms: J
  • F-3-11, Acronyms and Glossary of Defined Terms: K
  • F-3-12, Acronyms and Glossary of Defined Terms: L
  • F-3-13, Acronyms and Glossary of Defined Terms: M
  • F-3-14, Acronyms and Glossary of Defined Terms: N
  • F-3-15, Acronyms and Glossary of Defined Terms: O
  • F-3-16, Acronyms and Glossary of Defined Terms: P
  • F-3-17, Acronyms and Glossary of Defined Terms: Q
  • F-3-18, Acronyms and Glossary of Defined Terms: R
  • F-3-19, Acronyms and Glossary of Defined Terms: S
  • F-3-20, Acronyms and Glossary of Defined Terms: T
  • F-3-21, Acronyms and Glossary of Defined Terms: U
  • F-3-22, Acronyms and Glossary of Defined Terms: V
  • F-3-23, Acronyms and Glossary of Defined Terms: W
  • F-3-24, Acronyms and Glossary of Defined Terms: X
  • F-3-25, Acronyms and Glossary of Defined Terms: Y
  • F-3-26, Acronyms and Glossary of Defined Terms: Z
  • F-4-01, References to Fannie Mae's Website
  • F-4-02, List of Contacts
  • F-4-03, List of Lender Contracts

COMMENTS

  1. Contractual Obligations for Sellers/Servicers

    The following special approvals will be documented by an addendum to the Mortgage Selling and Servicing Contract (MSSC) between Fannie Mae and the seller/servicer: co-op share loans, ... The servicer services Fannie Mae loans as an independent contractor and not as an agent, assignee, or representative of Fannie Mae. Assignment:

  2. General Requirements

    A2-9-01, General Requirements (05/11/2022) Share. Fannie Mae, at its sole discretion and at any time, may require a servicer, at the servicer's expense, to prepare, execute, and/or record assignments of the mortgage to Fannie Mae. The mortgage assignments that it prepares must meet the requirements described in the following table.

  3. Servicing Guide Announcement (SVC-2022-03) May 11, 2022

    Effective: Effective immediately, servicers are no longer required to prepare an unrecorded assignment of mortgage to Fannie Mae for mortgage loans not registered in MERS for concurrent and post-delivery servicing transfers. As communicated in LL-2021- ... or Fannie Mae's Single-Family Servicer Support Center at 1-800-2FANNIE (1-800-232-6643).

  4. Lender Letter (LL-2021-15) Oct. 20, 2021

    and Servicers may also contact their Fannie Mae Account Team, Portfolio Manager, or Fannie Mae's Single-Family Servicer Support Center at 1-800-2FANNIE (1-800-232-6643) if they have questions about this Lender Letter. Guide questions? Get answers to all your policy questions, straight from the source. Ask Poli. Let your voice be heard!

  5. Multifamily Selling and Servicing Guide

    Contract (Form 6473), and an Omnibus Assignment of Contracts, Plans, Permits, and Approvals (Form 6473), will be required; Fannie Mae will charge a change in use fee, and the Servicer may charge additional fees at its discretion, subject to approval by Fannie Mae; The Borrower must reimburse all legal costs incurred by Fannie Mae; and

  6. Assigning Contract and Guaranty Fee Information

    On the Pool Details page, select the Update All Loans button. The Update Loans page will be displayed, indicating that the update includes all the loans in the pool (5 of 5 loans). Go to the Investor Information section and assign the contract number. For demonstration purposes only, we assigned contract number "123456" to all the loans in ...

  7. Lender Responsibilities

    For most loans, Fannie Mae requires that the lender obtain a signed and complete appraisal report that accurately reflects the market value, condition, and marketability of the property. ... This documentation is especially important for transactions involving an assignment (or sale) of a contract for sale and back-to-back, simultaneous, double ...

  8. ASSIGNMENT OF MORTGAGE

    Multistate Mortgage Assignment -Single Family - Fannie Mae Uniform Instrument Form 3741 07/2021 Page 1 of 4 . Recording Requested By/Return To: ASSIGNMENT OF MORTGAGE [To be used only where Fannie Mae is the assignee.] For Value Received, the undersigned holder of a Mortgage (herein "Assignor") whose address is ...

  9. Pledge of Servicing Rights and Transfer of Interest in ...

    1. a pledge or grant of a security interest in the servicing rights to all or part of its Fannie Mae servicing portfolio, including mortgage loans in MBS pools (a "pledge of servicing"); 2. a sale, assignment, transfer, pledge, or hypothecation of all or any portion of its compensation in excess of the amount needed to service mortgage ...

  10. Can you "assign" a contract to a buyer who is using ...

    Accountant. cedar rapids, IA. Posted 10 years ago. Just wanted to know if you can assign a contract to a conventional buyer? I assume you can but I hear the term "cash" buyers quite a bit in wholesaling examples. Thanks. 0 Votes. Follow. 2 Replies.

  11. Mortgage Assignments

    D2-1-02, Fannie Mae QC File Request and Submission Requirements ; D2-1-03, Outcomes of Fannie Mae QC Reviews ; D2-1-04, Identifying and Remedying Origination Defects Under the Remedies Framework ; Part E Quick Reference Materials . Chapter E-1, Selling Guide Resources . E-1-01, References to Fannie Mae's Website ; E-1-02, List of Contacts

  12. Monthly Debt Obligations

    Fannie Mae will waive this requirement and not require the debt to be included in the DTI ratio if the following documentation is provided: a fully executed sales contract for the current residence, and. ... The lender is not required to evaluate the payment history for the assigned debt after the effective date of the assignment. The lender ...

  13. Obtaining and Executing Legal Documents

    Include a copy of the recorded assignment of mortgage to Fannie Mae. ... A1-4.1-01, Defining a Breach of Contract ; A1-4.1-02, Fannie Mae's Remedies ; Section A1-4.2, Imposition of Compensatory Fees . A1-4.2-01, Compensatory Fees Other Than Delays in the Liquidation Process ; A1-4.2-02, Compensatory Fees for Delays in the Liquidation Process ...

  14. 1-4 FAMILY RIDER

    MULTISTATE 1-4 FAMILY RIDER--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3170 07/2021 Page 1 of 1. 1-4 FAMILY RIDER. ... D. ASSIGNMENT OF LEASES. Upon Lender's request after default, Borrower will assign to Lender all leases of the Property and all security deposits made in connection with leases

  15. PDF RESIDENTIAL REAL ESTATE PURCHASE AND SALE CONTRACT

    this contract, the contract and any riders or addendums thereto shall be collectively referred to as the "Agreement." 2. PROPERTY: The land, buildings, improvements and structures are collectively referred to as the "Property." ... FANNIE MAE FORM 001 (05/06/2019) 2 . The Purchaser shall present proof, satisfactory to the Seller, of the ...

  16. Purchase Transactions

    Requirements for Purchase Transactions with LTV, CLTV, or HCLTV Ratios of 95.01 - 97%. If the LTV, CLTV, or HCLTV ratio exceeds 95% for a purchase transaction, the following requirements apply. Note: The CLTV ratio can be up to 105% if the subordinate lien is a Community Seconds loan. Fixed-rate loans with terms up to 30 years.

  17. Appraiser Selection Criteria

    Fannie Mae does allow lenders to use third-party vendors (for example, appraisal management companies) to manage the appraiser selection process. However, it should be noted that if a lender enters into a contract with any vendor, contractor, or third-party service provider, the lender is accountable for the quality of the work performed as if ...

  18. Processing a Transfer of Ownership

    Note: Once Fannie Mae returns the executed assignment of mortgage to the servicer, ... A1-4.1-01, Defining a Breach of Contract ; A1-4.1-02, Fannie Mae's Remedies ; Section A1-4.2, Imposition of Compensatory Fees . A1-4.2-01, Compensatory Fees Other Than Delays in the Liquidation Process ; A1-4.2-02, Compensatory Fees for Delays in the ...

  19. Subject and Contract Sections of the Appraisal Report

    Fannie Mae's appraisal report forms require the appraiser to research and identify whether the subject property is currently for sale or if it has been offered for sale in the 12 months prior to the effective date of the appraisal by selecting either the 'Yes' or the 'No' checkbox. ... enter a contract date if the Assignment Type is a ...

  20. Update: Fannie Mae Guidelines Raise Concerns, Could Bar ACV Coverage

    Update: This article was updated May 7, 2024 to include more information from Fannie Mae and Freddie Mac, and to show that the replacement-value guidelines have been in place for a number of years ...

  21. Representation and Warranty Requirements

    termination of the MSSC and any agreement that is part of the Lender Contract unless Fannie Mae expressly releases the seller/servicer from them in writing. ... D2-3.4-03, Assignment of a Mortgage Loan to the Insurer or Guarantor ; D2-3.4-04, Qualifying Mortgage Assumption Workout Option

  22. Legal Requirements for Co-op Projects

    The co-op project must be in compliance with the requirements imposed by the holder of any prior financing for the project. If the blanket mortgage on a project includes a due-on-encumbrance clause and the project is located in a state in which share loans are considered to be an encumbrance on the project, the blanket lender must consent to the share loan financing.

  23. Execution of Legal Documents

    A1-2-01, Servicer's Termination of the Lender Contract ; A1-2-02, Fannie Mae's Termination of the Lender Contract without Cause ; Chapter A1-3, Repurchases, Indemnifications, and Make Whole Payment Requests ... D2-3.4-03, Assignment of a Mortgage Loan to the Insurer or Guarantor ; D2-3.4-04, Qualifying Mortgage Assumption Workout Option

  24. Defining a Breach of Contract

    A1-4.1-01, Defining a Breach of Contract (06/21/2017) Any of the following events constitute a breach of the servicer's contractual obligations: the failure to take diligent action consistent with applicable law to foreclose any mortgage loan that is in default, whether or not resulting from the acts or omissions of a law firm or other person ...

  25. Escrow, Taxes, Assessments, and Insurance

    A1-2-01, Servicer's Termination of the Lender Contract ; A1-2-02, Fannie Mae's Termination of the Lender Contract without Cause ; Chapter A1-3, Repurchases, Indemnifications, and Make Whole Payment Requests ... D2-3.4-03, Assignment of a Mortgage Loan to the Insurer or Guarantor ; D2-3.4-04, Qualifying Mortgage Assumption Workout Option