Skip to main content
Search the Guide:

D1-1-02, Evaluating a First Lien Mortgage Loan for Charge-Off and Release of Lien (05/15/2019)

The servicer is authorized to submit to Fannie Mae for approval a request to cease collection efforts on a delinquent mortgage loan when either 1) all appropriate measures to collect under this Guide have been exhausted and the servicer has deemed the debt to be uncollectible, or 2) a foreclosure sale should not be completed for a first lien conventional mortgage loan that Fannie Mae owns or securitizes, and - in either instance - at least one of the following situations apply:

Fannie Mae must determine if a charge-off and release of the related first lien is the most beneficial outcome for the mortgage loan.

The servicer must follow the procedures in F-1-24, Requesting Fannie Mae’s Approval via Fannie Mae’s Servicing Solutions SystemF-1-24, Requesting Fannie Mae’s Approval via Fannie Mae’s Servicing Solutions System for detailed requirements related to requesting prior approval and, if approved, completing a charge-off/lien release, the Investor Reporting Manual for reporting a charge-off to Fannie Mae, and Reimbursement for Recording Costs Associated with a Mortgage Loan Satisfaction or Charge-Off in F-1-05, Expense ReimbursementF-1-05, Expense Reimbursement.

Recent Related Announcements

The table below provides references to recently issued Announcements that are related to this topic.

Announcements Issue Date
Announcement SVC-2019-03 May 15, 2019