Servicing Guide

Published June 10, 2020

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.

View All Servicing Policy Updates

Download PDF

Hint: Ask in a form of a question.

For best results, pose your search like a question.

E-4.1-01: Notifying Fannie Mae of an Acquired Property (04/10/2019)

Once the foreclosure sale is held and the property acquired, or a Mortgage Release has been executed, the servicer must notify Fannie Mae about the property acquisition.

Two different notifications are required:

  • an early warning notice (REOGram) that Fannie Mae has an acquired property to dispose of, and

  • the notice of the removal status code that is part of the regular monthly reporting process.

See Reporting a Mortgage Release to Fannie Mae in F-1-23, Reporting a Workout Option via Fannie Mae’s Servicing Solutions System, as well as Reporting a Mortgage Loan Liquidation to Fannie Mae in Fannie Mae’s Investor Reporting Manual for additional information.

Unless otherwise directed by Fannie Mae, a special servicing option MBS mortgage loan that has been foreclosed must be removed from the MBS pool no later than the remittance date following the date on which the liquidation action code was reported to Fannie Mae.

If Fannie Mae advises the servicer that the acquired property related to a foreclosed special servicing option MBS mortgage loan remains in the MBS trust after foreclosure, it must be removed from the trust no later than the close of the third calendar year following the calendar year in which the MBS trust acquired the property. See E-3.5-01, Reclassifying or Removing MBS Mortgage Loans Post-Foreclosure for additional information on this topic.

This topic contains the following:

Timing of the REOgram

Within 24 hours after the date of a foreclosure sale or the servicer accepts the executed Mortgage Release, the servicer must send an REOgram to Fannie Mae for the following mortgage loans:

  • all conventional mortgage loans; and

  • any special servicing option RD mortgage loans, even though Fannie Mae may not gain clear title to the property until after expiration of any redemption period.

Note:In applicable jurisdictions, when the foreclosure is completed through a process under which title vests in Fannie Mae (or the servicer in appropriate cases) by operation of court order and there is no foreclosure sale, the servicer must send the REOgram within 24 hours of when the court’s order is entered on the docket.

Fannie Mae may charge the servicer a compensatory fee for each day it is late in submitting the REOgram unless it determines there is a reasonable explanation for the delay as described in A1-4.2-02, Compensatory Fees for Delays in the Liquidation Process. Fannie Mae also may exercise any other available and appropriate remedies for late submissions.

Contents of the REOgram

The REOgram must include the items listed in the following table.

Required elements of the REOgram Required elements of the REOgram

The servicer's name and address, its nine-digit Fannie Mae servicer number, and the name and telephone number of its contact person.

Evidence the subordinate lienholder has recorded the release of the subordinate lien in connection with an REOgram related to a Mortgage Release by providing all of the following:

  • the county and date of recordation,

  • book,

  • page, and

  • document number, if applicable, in the comments field of the REOgram.

Fannie Mae's loan number.

The servicer's mortgage identification number.

Lien type (first or second).

Loan type (conventional or RD).

Loan origination date.

An indication of whether a property insurance claim is pending.

Type of property (single-family, two- to four-unit, or unit in a condo, PUD, or co-op project).

The property address including:

  • house or unit number;

  • street name, city, county, state, and ZIP code; and

  • the property’s legal description (including the tax parcel identification).

LPI date and the UPB.

The manufactured housing identification.

Occupancy status—vacant, owner- occupied, or tenant-occupied.

If the mortgage loan is secured by an investment property, it is very important to provide all available information, including number of units, occupancy status, names of any tenants, rental income, lease amounts, etc.

Date of the foreclosure sale (or date the court’s order was entered on the docket if there was no sale); or the Fannie Mae’s servicing solutions system closing date for an REOgram related to a Mortgage Release.

The expiration date of any applicable redemption period.

The name of the original appraiser, the date of the appraisal, and the appraised value.

The name and contact information of the law firm that handled the foreclosure.

Date of last property inspection.

MI information including:

  • insurer's name,

  • Fannie Mae's two-digit identification code for the mortgage insurer,

  • name and telephone number of the mortgage insurer's contact person,

  • certificate number,

  • type of coverage,

  • coverage percentage, and

  • the claim status and amount.

If Fannie Mae's mortgage loan is in a second lien position, appropriate information about the first lien mortgage loan, including:

  • name of the first lien mortgage loan servicer,

  • an indication of whether Fannie Mae has an ownership interest in the first lien mortgage loan,

  • the mortgage insurer's name and the percent of coverage it provides,

  • the UPB,

  • the LPI date, and

  • the amount of the advances the second lien mortgage loan servicer has made against the first lien mortgage loan.

If a property subject to resale restrictions is acquired by Fannie Mae through foreclosure or the acceptance of a Mortgage Release, and the resale restrictions survive foreclosure, in the section of the REOgram titled "Comments about the Property,” the servicer must indicate that the property is subject to resale restrictions that survive foreclosure. The servicer must also provide contact information for the governmental housing agency or other applicable organization. With respect to all resale restrictions, the servicer represents and warrants that upon transfer of the property to Fannie Mae, all required notices have been given in an appropriate manner, and that the foreclosure or Mortgage Release complies with the requirements of the applicable resale restrictions. With respect to resale restrictions that do not survive foreclosure or acceptance of a Mortgage Release, or the expiration of any applicable redemption period, the servicer represents and warrants that all actions necessary to terminate the resale restrictions have been taken.

Monitoring the Status of Acquired Properties

After the servicer submits an REOgram to Fannie Mae, it must monitor the property's status and ensure that it files its request for expense reimbursement in a timely manner, in accordance with the requirements and timeframes set forth in E-5-01, Requesting Reimbursement for Expenses.

Have You Tried Ask Poli?

Poli knows. Just ask.

Ask Poli features exclusive Q&As and
more—plus official Selling & Servicing

Try Ask Poli

Related Articles

How does the servicer notify Fannie Mae about an acquired property?

Once the foreclosure sale is held and the property acquired, or a Mortgage Release has been executed, the servicer must notify Fannie Mae about the...

Read more

How does the servicer remove a special servicing option MBS mortgage loan from an MBS pool after foreclosure?

Unless otherwise directed by Fannie Mae, a special servicing option MBS mortgage loan that has been foreclosed must be removed from the MBS pool no later...

Read more

Have guide questions? Get answers to all of your policy questions, straight from the source.

Get Started
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.

Email Us
If you still have Technical Support questions, feel free to