If the mortgage insurer or guarantor exercises its right under the policy to acquire a delinquent government mortgage loan or an assignment is the only way to liquidate a mortgage loan, the servicer must:
- assign the mortgage loan to the insurer or guarantor and take required follow-up actions in compliance with applicable regulations and procedures,
- file a claim with the insurer or guarantor, and
- report the assignment to Fannie Mae. See the Investor Reporting Manual for reporting the assignment to Fannie Mae.
Fannie Mae will hold the servicer accountable for any loss Fannie Mae incurs because it failed to assign a VA-guaranteed mortgage loan for refunding when the VA instructed it to do so.
For more information please see: D2-3.4-03: Assignment of a Mortgage Loan to the Insurer or Guarantor.