The servicer must evaluate a borrower of a second lien mortgage loan for a Mortgage Release in accordance with D2-3.4-02, Offering a Mortgage Release (Deed-in-Lieu of Foreclosure) for a Second Lien Mortgage Loan.
The following table outlines the required servicer actions to request Fannie Mae’s prior written approval for a Mortgage Release.
Transmit the following through Fannie Mae’s servicing solutions system:
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 Documents.
For more information please see: F-1-25: Requesting Fannie Mae’s Approval via Fannie Mae’s Servicing Solutions System