Servicing Guide

Published September 9, 2020

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What actions must be taken in order to service the request for transfer of ownership on an RD mortgage loan?

The servicer must service RD mortgage loans in accordance with the mortgage loan instruments. If an RD mortgage loan has the due-on-sale (or due-on-transfer) provision of Fannie Mae's conventional mortgage instruments, the servicer must enforce the provision unless the transfer of ownership is one of the exempt transactions described in D1-4.1-02, Allowable Exemptions Due to the Type of Transfer.  

The servicer must adhere to the requirements described in D1-4.1-05, Enforcing the Due-on-Sale (or Due-on-Transfer) Provision for accelerating the debt for an RD mortgage loan.

For more information please see: D1-4.3-02: Transfers of Ownership on RD Mortgage Loans.

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