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F-1-26, Servicing eMortgages (05/10/2023)

This Servicing Guide Procedure contains the following:

Loan Modifications for an eMortgage

Any modifications to an eMortgage must comply with the requirements in Section D2–3.2, Home Retention Workout Options for the particular Fannie Mae mortgage loan modification, including but not limited to, the borrower’s execution and return of a copy of the Loan Modification Agreement (Form 3179). The following table describes the additional steps the servicer must take when an eMortgage is modified.

The servicer must...

Update the MERS eRegistry to provide notice of the modification agreement.


Maintain the original modification agreement in the servicing file and all associated modifying instruments.

Foreclosure, Bankruptcy or Other Legal Proceedings

The servicer must request a transfer in control and location in accordance with Temporary Possession by the Servicer in  A2-1-05, Note Holder Status for Legal Proceedings Conducted in the Servicer’s NameA2-1-05, Note Holder Status for Legal Proceedings Conducted in the Servicer’s Name. In states in which the seller/servicer must be the holder of an eNote prior to commencing legal action (such as foreclosure, filing a Proof of Claim or other filing, an action in a borrower’s bankruptcy proceedings or other litigation in connection with servicing a mortgage loan), the servicer must request a transfer in “Control and Location” of an eNote from Fannie Mae using the steps in the following table.

Step Servicer Action

Submit a Request for Transfer of Control of eNotes (Form 2009e) to Fannie Mae’s Custodian Oversight Department at [email protected] at least three business days before the change in control and location is required.


Accept the transfer on the same business day the servicer receives notification from Fannie Mae that the transfer has been initiated.


Verify that the transfer has been completed and that the servicer now is in the CONTROLLER field on the MERS eRegistry and is also listed in the LOCATION field.

The servicer must initiate a timely transfer of control and location back to Fannie Mae if the foreclosure process for an eMortgage is canceled.

Refinancing an eNote Using a New York Consolidation, Extension and Modification Agreement (CEMA)

The servicer must follow the acceptable refinance and lending practices in accordance with Chapter A2–2, Refinance and Lending Practices. The following table describes the servicer’s responsibilities when performing a New York CEMA on an eNote.

The servicer must...

Request a change in Control and Location of the eNote from Fannie Mae.


Print the Authoritative Copy of the eNote.


Update the status on the eRegistry to “INACTIVE-Converted to Paper.”


Attach the following to the printed Authoritative Copy of the eNote:

  • date of conversion on the MERS eRegistry;

  • the name and company of the person converting the eNote;

  • documentation from the MERS eRegistry reflecting registration, transfer history, and status of the eNote;

  • a statement indicating that the MERS transfer history and future paper endorsements are incorporated into the Note as an allonge;

  • a statement signed by an officer of the servicer indicating that the processes and methods used in printing the eNote ensured that

    • the information and signatures on the face of the printed eNote are a complete and accurate reproduction of those reflected on the face of the Authoritative Copy of the eNote;

    • the servicer, at the time of the conversion to paper, maintained control and possession of the eNote;

    • the eNote can no longer be transferred to a new note holder; and

    • the MERS eRegistry shows that the electronic eNote has been converted to a paper-based Note; and

  • any other allonge appropriate for the Note.


Ensure that the paper-based eNote reflects that it is an eNote that has been converted to paper and that the paper-based eNote is now the original Note.


Complete an endorsement of the converted eNote in blank and without recourse using the allonge.


Deliver the converted (paper) eNote to the lender that is originating the CEMA.

Note: If the servicer is also the lender originating the CEMA, the servicer may postpone printing the Authoritative Copy of the eNote and subsequent steps outlined above until after the CEMA transaction is completed. The servicer must still request a change in Control and Location of the eNote from Fannie Mae to the servicer prior to completing the CEMA transaction.

The servicer must take the actions in the following table if the CEMA transaction is not completed.

The servicer must...

Send the converted (paper) eNote, that is endorsed in blank and without recourse, to the servicer's document custodian within three business days of receipt of the Note from the CEMA lender. The communication to the document custodian must:

  • include a subject line that displays, "PAPER NOTE - CONVERTED FROM eNOTE;" and 
  • indicate the converted eNote was previously maintained by Fannie Mae.

Note: Because the document custodian may not have records or corresponding data for the converted eNote, the servicer must coordinate with its document custodian on the appropriate process for providing data and onboarding of the Note to its document custodian.


Submit a request to remove SFC 508 (used to identify an eMortgage) from the mortgage loan via the post-purchase adjustment process (see Fannie Mae's website for additional information).

Note: When the servicer was also the lender originating the CEMA and has not converted the eNote to paper, the servicer must promptly initiate a change in the Control and Location of the eNote from the servicer back to Fannie Mae.

Recent Related Announcements

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

Announcements Issue Date
Announcement SVC-2023-03 May 10, 2023