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.

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D1-4.1-01: Determining Whether a Transfer of Ownership Is Permitted (11/12/2014)

This topic contains information on determining whether a transfer of ownership is permitted.

For purposes of enforcing the due-on-sale (or due-on-transfer) provision, if any, in the security instrument, the servicer must consider all of the following situations to be a transfer of ownership:

  • the purchase of a property “subject to” the mortgage loan,

  • the assumption of the mortgage loan debt by the property purchaser,

  • any exchange of possession of property under a land sales contract or any other land trust device, and

  • in cases in which an inter vivos revocable trust is the borrower, any transfer of a beneficial interest in the trust.

When the servicer receives a request for a statement of account in connection with a possible transfer of ownership of a property, or if the servicer learns after the fact that a transfer has occurred, the servicer must take the actions listed in the following table.

The servicer must...

Review the mortgage loan instruments to determine whether the mortgage loan is subject to enforcement of the due-on-sale (or due-on-transfer) provision.


Investigate any questionable changes to determine whether a transfer of ownership has occurred.


Determine whether any action needs to be taken to enforce the due-on-sale (or due-on-transfer) provision.

The statement of account that the servicer issues in connection with a possible transfer must clearly state the items listed in the following table.

The statement of account must clearly...

State Fannie Mae’s right to enforce the due-on-sale (or due-on-transfer) provision, if applicable.


Describe Fannie Mae’s policy regarding enforcement of due-on-sale (or due-on-transfer) provisions.


Describe any exceptions or limiting conditions to the policy.

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