source:
  type: guide
  id: fnma-svc-e-3.3-05
  authority: Fannie Mae Servicing Guide E-3.3-05 — Issuing Bidding Instructions
  description: Fannie Mae Servicing Guide E-3.3-05 — Issuing Bidding Instructions.
  coverage_tier: operative
obligations:
- id: fnma-svc-e-3.3-05-full
  canonical_id: fnma-svc-e-3.3-05-full
  section: Fannie Mae Servicing Guide E-3.3-05 — Issuing Bidding Instructions
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide E-3.3-05 — Issuing Bidding Instructions
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: cf63a82bbb4adfba
    fetched_at: '2026-05-22T23:53:19Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'E-3.3-05, Issuing Bidding Instructions (05/10/2023) Introduction
      This topic contains the following: General Requirements for All Bidding Instructions
      Bidding Instructions for Conventional Mortgage Loans Bidding Instructions for
      FHA-Insured Mortgage Loans Bidding Instructions for VA-Guaranteed Mortgage Loans
      Bidding Instructions for RD-Guaranteed Mortgage Loans General Requirements for
      All Bidding Instructions The servicer must issue bidding instructions to the
      law ﬁrm for all mortgage loans referred for foreclosure. The servicer must pay
      particular attention to any bidding requirements issued by FHA, VA, RD, or the
      mortgage Published May 13, 2026 462 insurer to make sure that Fannie Mae will
      not be prevented from recovering the full amount due under the insurance or
      guaranty contract. The following table provides additional requirements for
      obtaining a property valuation for the purpose of bidding instructions when
      required by applicable law, Fannie Mae, or the MI company. ✓ The servicer must…
      Request the property valuation through Fannie Mae''s servicing solutions system
      as soon as it is aware of the foreclosure sale date, but no earlier than 90
      days prior to the foreclosure sale date. Include the cost the property valuation
      order in the MI claim, when applicable. Obtain the results of the property valuation
      order through Fannie Mae’s servicing solutions system within 10 calendar days
      from the date the servicer submits the request. Note: Property valuation results
      may take longer in the event of unusual market conditions or if access to the
      property is delayed. The servicer must not issue bidding instructions to the
      law ﬁrm if its preforeclosure property inspection reveals, or if the servicer
      otherwise discovers, that the property has incurred signiﬁcant hazard damage
      without a claim having been ﬁled with the insurance carrier. Instead, the servicer
      must contact its Fannie Mae Servicing Representative (see F-4-02, List of Contacts)
      to determine whether or not a property insurance claim should be ﬁled, and if
      so, what foreclosure bid should be entered. Bidding Instructions for Conventional
      Mortgage Loans The servicer must contact its Fannie Mae Servicing Representative
      (see F-4-02, List of Contacts) to obtain bidding instructions for all conventional
      second lien mortgage loans. For all ﬁrst lien mortgage loans and co-op share
      loans that are in a ﬁrst lien position, the servicer must issue bidding instructions
      based on the following guidelines, which are designed to ensure that a third
      party''s bidding at the foreclosure sale will not result in Fannie Mae''s eventually
      acquiring the property for more than the total mortgage indebtedness or for
      less than Fannie Mae''s reserve price as described in When to Obtain a Reserve
      Price. For Fannie Mae''s bidding instructions, the servicer must consider whether
      or not the mortgage loan has MI; the property is located in a state (or jurisdiction)
      that has a redemption period in which the borrower (or a junior lienholder)
      can redeem the property for the amount of the foreclosure bid; the property
      is located in a state (or jurisdiction) that does not have a redemption period,
      but that levies transfer taxes and/or other related fees and costs on the winning
      bidder at the foreclosure sale; the property is located in a state (or jurisdiction)
      that recognizes Fannie Mae''s exemption from the payment of real estate transfer
      taxes; Published May 13, 2026 463 the property has a property or ﬂood insurance
      claim that has been ﬁled; and the property is subject to a recorded resale restriction
      agreement or a shared equity transaction agreement, in which case the servicer
      must comply with the terms of any such agreement. When to Obtain a Reserve Price
      The servicer must obtain a reserve price from Fannie Mae in any of the following
      circumstances: when preparing bids for uninsured conventional ﬁrst lien mortgage
      loans, when applicable laws do not require that an appraisal report be used
      to set the bid, or if the mortgage insurer of a ﬁrst lien mortgage loan elects
      not to issue bidding instructions and defers to Fannie Mae. The following table
      provides a list of servicer requirements for obtaining and using a reserve price.
      ✓ The servicer must… Request the reserve price through Fannie Mae’s servicing
      solutions system between 30 and 90 days before the scheduled foreclosure sale
      date. Note: The servicer must use the reason code “Reserve Price Bid Instructions”
      when submitting a request to obtain a reserve price. Request an updated reserve
      price when the “expiration date” of the reserve price will occur prior to the
      scheduled foreclosure sale date. The servicer must always use an unexpired reserve
      price to establish the bid amount. Provide bidding instructions to the law ﬁrm
      in a timely manner so as not to delay, cancel, or stop a scheduled foreclosure
      sale. In circumstances where the servicer is unable to provide the law ﬁrm with
      the bidding instructions in a timely manner, it must document the mortgage loan
      servicing ﬁle accordingly. Note: The servicer must bid the total indebtedness
      amount minus any outstanding property or ﬂood insurance claim(s) if the calculated
      reserve price is not available in suﬃcient time prior to the foreclosure sale
      date to enable the law ﬁrm to enter a speciﬁed bid at the foreclosure sale.
      The following tables provide Fannie Mae''s requirements for the preparation
      of bidding instructions for a ﬁrst lien mortgage loan, depending on whether
      or not the mortgage loan is insured. For an Uninsured Conventional First Lien
      Mortgage Loan: Published May 13, 2026 464 If the security property is in a state
      or jurisdiction… Then the servicer must… that has a redemption period instruct
      the law ﬁrm to bid • an amount equal to the lesser of ⚬ 100% of the reserve
      price obtained from Fannie Mae, or ⚬ 100% of the total mortgage indebtedness
      minus any outstanding property or ﬂood insurance claims, or • such other amount
      as may be required by applicable law (e.g., judgment amount). that does not
      have a redemption period and does not levy transfer taxes or other related fees
      and costs on the winning foreclosure bid, or does levy transfer taxes to which
      Fannie Mae''s real estate transfer tax exemption applies that does not have
      a redemption period, but which levies transfer taxes or other related fees and
      costs on the winning foreclosure bid and does not recognize Fannie Mae''s exemption
      from paying real estate transfer taxes instruct the law ﬁrm to enter an initial
      bid of $100 (or any other minimum amount the state requires in order for the
      bid to be considered valid), and continue bidding until it either • wins the
      bidding, or • bids an amount equal to the lesser of: ⚬ 100% of the reserve price
      obtained from Fannie Mae, or ⚬ 100% of the total mortgage indebtedness minus
      any outstanding property or ﬂood insurance claims, or • such other amount as
      may be required by applicable law (e.g., judgment amount). If the bid amount
      cannot be increased because the person conducting the foreclosure is prohibited
      from accepting a range of bids from the servicer, the servicer must instruct
      the law ﬁrm to bid as if the property were in a jurisdiction with a redemption
      period as indicated above. For an Insured Conventional First Lien Mortgage Loan:
      For a ﬁrst lien mortgage loan covered by MI, the servicer must bid an amount
      approved by the mortgage insurer. If the mortgage insurer elects not to issue
      bidding instructions per its guidelines, or defers to Fannie Mae for foreclosure
      sale bidding instructions, the servicer must follow the policies and requirements
      for an uninsured conventional ﬁrst lien mortgage loan. If the mortgage insurer’s
      bidding instructions or requirements include preserving deﬁciency rights, and
      where permitted by applicable law, the servicer must preserve the mortgage insurer’s
      right to pursue a deﬁciency action in accordance with the mortgage insurer’s
      instructions. Published May 13, 2026 465 Additional Requirements for a Mortgage
      Loan Subject to a Resale Restriction or Shared Equity Transaction: The following
      table provides Fannie Mae''s requirements for the preparation of bidding instructions
      for a ﬁrst lien mortgage loan subject to a resale restriction or a shared equity
      transaction agreement. If the property is subject to a resale restriction agreement
      or a shared equity transaction agreement... Then the servicer must... that survives
      foreclosure contact its Fannie Mae Servicing Representative (see F-4-02, List
      of Contacts) if the resale restrictions would result in bidding instructions
      for an amount less than total indebtedness or the reserve price obtained from
      Fannie Mae. that does not survive foreclosure instruct the law ﬁrm to bid •
      an amount equal to the lesser of ⚬ 100% of the reserve price obtained from Fannie
      Mae, or ⚬ 100% of the total mortgage indebtedness minus any outstanding property
      or ﬂood insurance claims, or • such other amount as may be required by applicable
      law (e.g., judgment amount). Bidding Instructions for FHA-Insured Mortgage Loans
      The amount the servicer must bid for a FHA-insured mortgage loan depends on
      when the mortgage loan was endorsed for insurance. The following table provides
      additional bidding information based on the policy endorsement date. Published
      May 13, 2026 466 If the FHA mortgage loan... Then the bid amount... And the
      servicer must... was endorsed for insurance before November 30, 1983 must include
      the full amount of the indebtedness consisting of the • UPB; • accrued interest
      to the date of the sale using the rate in eﬀect for each payment on the date
      it became due; • any advances for T&I; and • other foreclosure costs, including
      attorney fees and any reimbursable property inspection fees. • subtract from
      the total indebtedness any funds that it is holding for a mortgage loan insured
      under an FHA Escrow Commitment or for a mortgage loan that is subject to an
      interest rate buydown plan, and • send Fannie Mae any funds it holds as soon
      as the foreclosure sale is held. was endorsed for insurance on or after November
      30, 1983 will vary depending on whether FHA elects to have the property appraised.
      When FHA has the property appraised, it will advise the servicer of the amount
      to bid at the foreclosure sale. The bid amount will reﬂect the fair market value
      of the property, appropriately adjusted for FHA''s estimate for holding costs
      and resale costs that it would incur if the property were conveyed. bid the
      exact amount speciﬁed by FHA as long as the servicer receives FHA’s bid amount
      within the ﬁve days before the foreclosure sale — unless state law requires
      a higher amount to be bid. If the servicer does not receive FHA’s bid amount
      within the ﬁve days before the foreclosure sale, it must bid the full amount
      of Fannie Mae''s indebtedness. Bidding Instructions for VA-Guaranteed Mortgage
      Loans For VA mortgage loans, the bid must be the amount that VA speciﬁed as
      its “upset price.” If VA does not specify an upset price, then the servicer
      must determine the bid amount by subtracting the amount the VA will pay under
      its guaranty from the amount required to satisfy the indebtedness. Bidding Instructions
      for RD-Guaranteed Mortgage Loans For RD mortgage loans, the servicer must bid
      the full amount of the indebtedness. This amount consists of the UPB; accrued
      interest to the date of the sale; Published May 13, 2026 467 any advances for
      T&I; and other foreclosure costs, including attorney fees and any reimbursable
      property inspection fees. 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 Announcement
      SVC-2022-04 June 8, 2022'
  judgment: false
