Servicing Guide

The Servicing Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Servicing Guide in PDF format.

View All Servicing Policy Updates

Download PDF

Hint: Ask in a form of a question.

C-1.2-04: Satisfying the Mortgage Loan and Releasing the Lien (05/15/2019)

Once payoff funds are received, the servicer must take all actions necessary to satisfy a mortgage loan, including recording a release of lien in the real property records, in a timely manner.

In addition, the servicer must determine and execute the appropriate satisfaction documents for the payoff of an electronic mortgage loan, based on the requirements of the state in which the security property is located.

For specific instructions, the servicer must follow the procedure Satisfying the Mortgage Loan and Releasing the Lien in F-1-09, Processing Mortgage Loan Payments and Payoffs. The servicer may request reimbursement of recordation of recording fees that cannot be legally charged to the borrower in accordance with F-1-05, Expense Reimbursement Requesting Reimbursement for Recording Costs Associated with a Mortgage Loan Satisfaction or Charge-Off.

This topic contains the following:

 

Satisfying the Mortgage Loan When Fannie Mae Is the Mortgagee of Record

The servicer that does not have a LPOA (or that has a power of attorney that does not cover release and satisfaction documents) must send any required release or satisfaction documents to Fannie Mae for execution, whether or not Fannie Mae is holding the custody documents.

 

Satisfying the Mortgage Loan When Fannie Mae Is Not the Mortgagee of Record

If Fannie Mae is not the mortgagee of record for a mortgage loan, the servicer must execute any required satisfaction documents in its own name (or in MERS’ name, if applicable for a MERS-registered mortgage loan).

Related Articles

Have guide questions? Get answers to all of your policy questions, straight from the source.

Get Started
X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.