When a borrower requests a partial release of real property securing Fannie Mae’s mortgage loan, the servicer must ensure that the borrower submits a completed Form 236. A complete application must include all information and documentation required per the form.
The servicer must determine whether the release of a portion of the real property meets the conditions in the following table.
|✓||Conditions required to approve a partial release of security|
The mortgage loan must be current.
|The mortgage loan must have been originated greater than 12 months prior to the date of the request.|
The mortgage loan must not have been
The priority of Fannie Mae’s mortgage lien must not be impacted.
|The release may not result in the property becoming inaccessible by public roads.|
The servicer must evaluate requests to release a portion of the real property securing the mortgage loan based on the specific circumstance of the request, as described in the following table.
|If the partial release of real property...||Then the servicer...|
|meets all of the conditions and the LTV based on the estimated property value after the release is less than 60%||is authorized to approve the release of real property on Fannie Mae’s behalf.|
|meets all of the conditions and the LTV based on the estimated property value after the release is greater than or equal to 60%||is authorized to approve the release on Fannie Mae’s behalf if the borrower agrees to reduce the mortgage loan balance by an amount sufficient to maintain the LTV ratio immediately prior to granting the release|
If the request to release a portion of the real property securing the mortgage loan includes a concurrent request to add land, the requirements for each request type must be met.
See below for related Q&A’s:
For more information please see: D1-1-01, Evaluating a Request for the Release, or Partial Release, of Property Securing a Mortgage Loan.