E-1.2-02, Timing of the Foreclosure Referral for Mortgage Loans Generally (05/10/2023)

For all mortgage loans secured by a principal residence, the servicer must refer the mortgage loan to foreclosure no earlier than the 121st day of delinquency unless applicable law permits earlier referral. If the servicer determines, in accordance with applicable law, that the property securing the mortgage loan is not, or is no longer the borrower’s principal residence, the servicer must refer the mortgage loan to foreclosure prior to the 121st day of delinquency as described below.

Depending on the outcome of the prereferral review for mortgage loans not secured by a principal residence, the mortgage loan must be referred to a law firm for foreclosure no later than the 120th day of delinquency, except in circumstances where the borrower submits a BRP shortly before the foreclosure referral. See E-3.2-01, Conducting Prereferral ReviewE-3.2-01, Conducting Prereferral Review and E-3.2-04, Postponing Foreclosure Referral for Mortgage Loans Not Secured by a Principal ResidenceE-3.2-04, Postponing Foreclosure Referral for Mortgage Loans Not Secured by a Principal Residence for additional information.

Foreclosure is considered to have begun on the date when the servicer refers the matter to a law firm. The servicer must maintain a record of the date of the referral in the mortgage loan file.

Fannie Mae requires the servicer to contact its Fannie Mae Servicing Representative (see F-4-02, List of ContactsF-4-02, List of Contacts) if it becomes aware of environmental hazards that affect the security property. Regardless of whether Fannie Mae is named as a party in any environmental litigation, it must be considered non-routine and the servicer must immediately notify Fannie Mae’s Legal department by submitting a Non-Routine Litigation Form (Form 20). See also E-1.3-02, Reporting Non-Routine Litigation to Fannie MaeE-1.3-02, Reporting Non-Routine Litigation to Fannie Mae for additional information. The servicer must follow the procedures in Reporting Environmental Hazards to Fannie Mae in F-1-08, Managing Foreclosure ProceedingsF-1-08, Managing Foreclosure Proceedings, for instructions specifically related to reporting environmental issues to Fannie Mae. See the Property Preservation Matrix and Reference Guide for additional information.