If the mortgage loan is delinquent and the transferee is unable to bring the mortgage loan current, the servicer must evaluate him or her for all available workout options in accordance with D2-2, Requirements for Contacting a Borrower and D2-3, Fannie Mae’s Home Retention and Liquidation Workout Options. If the servicer determines that a payment deferral or a mortgage loan modification is an appropriate workout solution, the servicer must
ensure that the transfer is an exempt transaction, and
review the transferee for a mortgage loan modification as if he or she was a borrower based on the requirements in this Servicing Guide and applicable law.
If the transferee is eligible for a payment deferral or a mortgage loan modification, the servicer must offer the transferee the appropriate workout option for which he or she is eligible. If the transferee satisfies all of the requirements of that workout option, then the servicer must require the transferee to sign an assumption agreement (which would be signed in conjunction with the modification agreement in the case of a mortgage loan modification).
If the previous borrower requests a release of liability, the servicer must determine that the transferee’s credit and financial capacity is acceptable (see F-1-29, Reviewing a Transfer of Ownership for Credit and Financial Capacity).
For more information please see: D1-4.1-02, Allowable Exemptions Due to the Type of Transfer