Skip to main content
Search the Guide:

F-3-20, Acronyms and Glossary of Defined Terms: T (11/08/2017)


taxes and insurance

take-out option

A post-conversion disposition option that requires the seller to redeliver as a portfolio mortgage loan a repurchased convertible ARM loan that was in an MBS pool following its conversion to a fixed-rate mortgage loan and to continue any recourse or credit enhancement that initially applied to the mortgage loan (unless Fannie Mae agrees that it is no longer needed).


to be announced

third-party sale

A foreclosure sale at which the successful purchaser of the property is someone other than the mortgagee or the borrower or their representatives.


Truth in Lending Act

total or near-total loss

A loss that is greater than 80% of the coverage amount of the insurance policy.

transfer date

For post-delivery servicing transfers, the date on which the physical transfer of the servicing or subservicing responsibilities from the transferor servicer or subservicer, as the case may be, to the transferee servicer or subservicer occurs. It may not necessarily be the same date as the sale date identified in the servicer transfer agreement.

transfer of ownership

Any means by which the ownership of property changes hands. Fannie Mae considers the transfer of all or any part of the property or any interest in the property to be a transfer of ownership, including the purchase of a property “subject to” the mortgage, the assumption of the mortgage debt by the property purchaser, and any exchange of possession of the property under a land sales contract, grant deed, or any other land trust device. In cases in which an revocable trust or a limited liability company (LLC) is the owner of the property, Fannie Mae also considers any transfer of a beneficial interest in the trust or a controlling interest in the LLC to be a transfer of ownership.

Trial Period Plan

A three-month period prior to the modification effective date during which the borrower makes payments approximating an amount equal to the modified payment as a condition of the modification. If the borrower is current or less than 31 days delinquent, the trial period must be four months in length.

two- to four-unit property

A property that consists of a structure that provides living space (dwelling units) for two to four families, although ownership of the structure is evidenced by a single deed.