F-1-24, Requesting Fannie Mae’s Approval via Fannie Mae’s Servicing Solutions System (06/08/2022)

A description of the borrower’s financial circumstances.

The property market value analysis from an appraisal or an interior BPO.

Information about any conditions of the mortgage insurer’s approval, if applicable.

The servicer’s recommendation to waive the due-on-sale (or due-on-transfer) provision and permit the assumption based on the creditworthiness of the prospective purchaser.

Submit the case into Fannie Mae’s servicing solutions system under the recommended workout option.

Indicate in the case comments section that the case is associated with a transfer of ownership or an assumption.

Transmit the following through Fannie Mae’s servicing solutions system:

• a description of the borrower's financial circumstances,

• a property valuation,

• general summary information about satisfaction of the eligibility criteria for Mortgage Release,

• an indication of whether the borrower can make a cash contribution to reduce Fannie Mae's loss, and

• its recommendation to Fannie Mae.

Obtain Fannie Mae’s decision regarding the Mortgage Release through Fannie Mae’s servicing solutions system. Fannie Mae will make its decision available shortly after Fannie Mae receives the servicer’s recommendation.

Fannie Mae approves the Mortgage Release

continue to step 3.

Fannie Mae denies the Mortgage Release and instructs the servicer to continue with foreclosure

report the initiation of foreclosure in the next delinquency status information it transmits to Fannie Mae after the date of Fannie Mae's decision. Do not continue to step 3.

Obtain the letter including the terms and conditions of Fannie Mae's decision about acceptance of the Mortgage Release through Fannie Mae’s servicing solutions system.

Have its attorney prepare the deed of conveyance and file a claim with the insurer or guarantor. Also see E-4.2-01, Completing Conveyance DocumentsE-4.2-01, Completing Conveyance Documents.

File a claim with the insurer or guarantor, if applicable.

Transmit the following through Fannie Mae’s servicing solutions system:

• a description of the borrower's financial circumstances,

• a property valuation,

• general summary information about satisfaction of the eligibility criteria for a Mortgage Release,

• an indication of whether the borrower can make a cash contribution to reduce Fannie Mae's loss,

• an analysis of the first lien mortgage loan servicer’s intentions and the possibility of recovery on the second lien mortgage loan if the mortgage loan is a second lien mortgage loan and Fannie Mae does not have an interest in the first lien mortgage loan, and

• its recommendation.

Note: If the borrower has non-retirement cash reserves greater than $50,000, the servicer must specify that when it submits the case. Specifically, the servicer must enter the dollar amount, as applicable, in the “assets” field in Fannie Mae’s servicing solutions system.

Obtain the letter including the terms and conditions of Fannie Mae's decision about acceptance of the Mortgage Release through Fannie Mae’s servicing solutions system. This letter will be available shortly after Fannie Mae receives the servicer’s recommendation.

Have its attorney prepare the deed of conveyance and file a claim with the insurer or guarantor. Also see  E-4.2-01, Completing Conveyance DocumentsE-4.2-01, Completing Conveyance Documents.

Obtain the results of the property valuation order through Fannie Mae's servicing solutions system within 10 calendar days from the date the servicer submits the request.

Note: Property valuation results may take longer in the event of unusual market conditions or if access to the property is delayed.

• The lien against the subject property has been released,

• The servicer will not/no longer pursue foreclosure proceedings, and

• The borrower is responsible for the payment of property taxes, insurance, and maintenance of the property in accordance with applicable requirements.

Obtain the results of the property valuation order through Fannie Mae's servicing solutions system within 10 calendar days from the date the servicer submits the request.

Note: Property valuation results may take longer in the event of unusual market conditions or if access to the property is delayed.

Fannie Mae has an interest in both the first and second lien mortgage loans

Fannie Mae may choose to consolidate the two mortgage loans and modify the borrower’s payments instead of charging off the debt.

Fannie Mae does not have an interest in the first lien mortgage loan

Fannie Mae may decide to either

• pursue a workout for the second lien mortgage loan,

• pay off the first lien mortgage loan and foreclose the second lien mortgage loan, or

• charge off the second lien mortgage loan debt.

Measure Fannie Mae’s outstanding debt against

• the estimated cost of continued collection efforts;

• the estimated cost of any required legal actions;

• the status, UPB, and ownership of the first lien mortgage loan;

• the mortgage insurer’s policy regarding the filing of an insurance claim when the debt is abandoned (if the mortgage loan is insured);

• the condition of the property and the estimated market value for the property; and

• the borrower’s ability to reinstate the mortgage loan(s).

If, based on the results of step 1 above, the servicer still recommends a charge-off, submit its recommendation through Fannie Mae’s servicing solutions system.

Obtain the letter including the terms and conditions of Fannie Mae's decision about charging-off the mortgage loan through Fannie Mae’s servicing solutions system. This letter will be available shortly after Fannie Mae receives the servicer’s recommendation.

Submit the following through Fannie Mae’s servicing solutions system:

• a description of the borrower’s financial circumstances,

• a property market value analysis,

• the specifics about the purchase offer, and

• the servicer’s recommendation to Fannie Mae.

Note: If the borrower has non-retirement cash reserves greater than $50,000, the servicer must specify that when it submits the case. Specifically, the servicer must enter the dollar amount, as applicable, in the “assets” fields in Fannie Mae’s servicing solutions system.

Send the same information submitted through Fannie Mae’s servicing solutions system and any required documentation to the mortgage insurer by overnight mail delivery (whenever possible).

Note: Fannie Mae and the mortgage insurer must be notified of a sales offer immediately and simultaneously to avoid jeopardizing Fannie Mae’s claim under the MI contract.

Obtain the letter including the terms and conditions of Fannie Mae’s decision through Fannie Mae’s servicing solutions system. This letter will be available shortly after Fannie Mae receives the servicer’s recommendation.