Servicing Guide

The Servicing Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Servicing Guide in PDF format.

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What are the requirements for obtaining and using a reserve price for conventional mortgage loans?

When to Obtain a Reserve Price

The servicer must obtain a reserve price from Fannie Mae in any of the following circumstances:

  • when preparing bids for uninsured conventional first lien mortgage loans,

  • when applicable laws do not require that an appraisal report be used to set the bid, or

  • if the mortgage insurer of a first lien mortgage loan elects not to issue bidding instructions and defers to Fannie Mae.

The following table provides a list of servicer requirements for obtaining and using a reserve price.

The servicer must…

Request the reserve price through the VMS in Fannie Mae’s servicing solutions system between 30 and 90 days before the scheduled foreclosure sale date.

Note: The servicer must use the reason code “Reserve Price Bid Instructions” when submitting a request to obtain a reserve price.


Request an updated reserve price when the “expiration date” of the reserve price will occur prior to the scheduled foreclosure sale date. The servicer must always use an unexpired reserve price to establish the bid amount.


Provide bidding instructions to the law firm in a timely manner so as not to delay, cancel, or stop a scheduled foreclosure sale. In circumstances where the servicer is unable to provide the law firm with the bidding instructions in a timely manner, it must document the mortgage loan servicing file accordingly.

Note: The servicer must bid the total indebtedness amount minus any outstanding property or flood insurance claim(s) if the calculated reserve price is not available in sufficient time prior to the foreclosure sale date to enable the law firm to enter a specified bid at the foreclosure sale.

For more information please see: E-3.3-05: Issuing Bidding Instructions

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