E-4.2-01, Completing Conveyance Documents (04/10/2019)

The following table outlines the required servicer actions for completing conveyance documents.

If Fannie Mae discovers during the marketing of an acquired property that additional information is needed, it will contact the servicer by telephone or email. The servicer must provide all requested additional information within three business days of the request. See A2-1-04, Execution of Legal DocumentsA2-1-04, Execution of Legal Documents for additional information regarding the execution of legal documents. The servicer must follow the procedures in F-1-10, Obtaining and Executing Legal DocumentsF-1-10, Obtaining and Executing Legal Documents. See also E-3.1-03, Fannie Mae Address for Instruments of RecordE-3.1-03, Fannie Mae Address for Instruments of Record

When the foreclosure is conducted in Fannie Mae's name, no conveyance document is required unless the mortgage insurer or guarantor has indicated it will accept conveyance of the property.

The following table outlines the required servicer actions when the foreclosure is conducted in Fannie Mae's name and the mortgage insurer or guarantor indicates it will accept conveyance of the property.

If the servicer knows that a property can be conveyed directly to FHA or the VA, and that it is allowed to directly convey the title to them, it must do so.

In the following circumstances, the servicer is responsible for the marketing and disposition of the acquired property and title to the property must remain in the servicer's name for

• an FHA coinsured mortgage loan,

• a modified special servicing option or a regular servicing option RD mortgage loan, or

• any regular servicing option MBS mortgage loan, or

• an FHA or VA mortgage loan that cannot be conveyed.

When the foreclosure is conducted in the servicer's name and title vests in the servicer, the servicer must subsequently convey title to the property to Fannie Mae for the following mortgage loans:

• a conventional mortgage loan held in Fannie Mae's portfolio,

• a conventional mortgage loan in a special servicing option MBS pool, or

• a special servicing option RD mortgage loan.

When the servicer is required to convey title to the property to Fannie Mae after the property is acquired, the law firm must have the title vested in Fannie Mae's name in a manner that will not result in the imposition of a transfer tax.

The servicer must submit any deed for recordation that conveys title to Fannie Mae on the day following the foreclosure sale, or in applicable cases when title vests in the servicer by operation of court order without a foreclosure sale, the day following the date when the court’s order is entered on the docket. Should the mortgage insurer or guarantor decide to accept conveyance of the property after title has been conveyed to Fannie Mae, the servicer must proceed as described in When Foreclosure Is Conducted in Fannie Mae’s Name in E-4.2-01, Completing Conveyance DocumentsE-4.2-01, Completing Conveyance Documents.

The conventional mortgage insurer decides whether it will accept conveyance of a property that secured a conventional mortgage loan only after the claim has been filed. Therefore, the property cannot be conveyed until the mortgage insurer provides notice of its decision.

Whenever the mortgage insurer agrees to accept the property, the servicer must immediately convey it.

The servicer can convey a property that secured an FHA mortgage loan as soon as Fannie Mae has acquired marketable title. The servicer must not convey a property that secured an FHA coinsured mortgage loan under any circumstances.

The servicer must convey a property that secured a VA mortgage loan to the VA when it sends the "notice of election to convey" within 15 days after the foreclosure sale date. The servicer must also send a preliminary billing for VA's "upset price."