Custody of the property must be turned over to FHA, VA, or the mortgage insurer as soon as possible after their requirements for conveying properties have been met. (Also see Selling Guide A3-2-01, Compliance with Laws.) When FHA or the VA does not accept a property that the servicer conveys, the servicer must determine why the property was reconveyed to Fannie Mae. If FHA's or VA's reasons for not accepting the property can still be resolved, the servicer must take any action required to correct the matter and then reconvey the property to FHA or VA. Failure to do so may result in Fannie Mae electing a repurchase, a make whole payment, or an indemnification payment (see A1-3-02, Fannie Mae-Initiated Repurchases, Indemnifications, Make Whole Payment Requests and Deferred Payment Obligations ). The servicer must address any questions regarding a property that was reconveyed to Fannie Mae’s CPM division (see F-4-03, List of Contacts).
For more information please see: E-4.2-02: Handling Reconveyance to the Insurer or Guarantor