The servicer must maintain the integrity of Fannie Mae’s rights under the mortgage loan by the appropriate enforcement of call options in the security instrument.
When a conventional mortgage loan includes a call option provision, the servicer must contact its Fannie Mae Servicing Representative (see F-4-03, List of Contacts) 90 days before the call date to obtain Fannie Mae's decision on whether it intends to exercise its option and, if so, whether the mortgage loan must be paid in full or whether Fannie Mae is willing to refinance it.
Whenever possible, Fannie Mae will refinance the mortgage loan. If Fannie Mae decides to call a participation pool mortgage loan, the participating lender has the right to repurchase it, rather than exercise the call.
For more information please see: D1-5-01: Call Options and Cross-Default Provisions