Servicing Guide

Published November 10, 2020

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Will Fannie Mae approve an assumption for a delinquent conventional mortgage loan if the subordinate lien is not paid off?

Fannie Mae will not approve an assumption if the mortgage loan has subordinate financing unless arrangements are made to pay off the subordinate lien(s).

  • Note: The servicer does not need to make any changes to its monthly investor reporting system reports to reflect mortgage assumptions for portfolio mortgage loans.

For more information please see Servicing Guide F-1-25: Requesting Fannie Mae’s Approval via Fannie Mae’s Servicing Solutions System. 

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Customers Recommend Ask Poli

If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

Guide Resources

For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more.

Visit Selling and Servicing Guide Communications and Forms

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