source:
  type: guide
  id: fnma-svc-f-1-17
  authority: Fannie Mae Servicing Guide F-1-17 — Processing a Transfer of Ownership
  description: Fannie Mae Servicing Guide F-1-17 — Processing a Transfer of Ownership.
  coverage_tier: operative
obligations:
- id: fnma-svc-f-1-17-full
  canonical_id: fnma-svc-f-1-17-full
  section: Fannie Mae Servicing Guide F-1-17 — Processing a Transfer of Ownership
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide F-1-17 — Processing a Transfer of Ownership
    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: 'F-1-17, Processing a Transfer of Ownership (11/13/2024) Introduction
      This Servicing Guide Procedure contains the following: Obtaining MI Approval
      for a Conventional Mortgage Loan Responding to a Title Transferred via Grant
      Deed Completing a Transfer of Ownership Obtaining MI Approval for a Conventional
      Mortgage Loan The servicer must process a transfer of ownership in accordance
      with Chapter D1-4, Transfers of Ownership. When a transfer of ownership occurs
      for a mortgage loan, obtaining the mortgage insurer’s approval is either part
      of the credit review process, or not required unless the borrower requests a
      release of liability. Published May 13, 2026 620 The servicer must review the
      MI policy for the speciﬁc provision regarding transfers of ownership, assumptions
      and releases of liability. Responding to a Title Transferred via Grant Deed
      The servicer must evaluate all transfers of ownership as required in Chapter
      D1-4, Transfers of Ownership. When the servicer becomes aware of a property
      transfer through Grant Deed, it must complete the actions shown in the following
      table. ✓ The servicer must… Continue to report credit information related to
      a mortgage loan delinquency (including the acceptance of a Mortgage Release
      or the initiation of foreclosure proceedings) to credit bureaus in the borrower’s
      name. Determine that the title to the property is clear and marketable (by obtaining
      a title bring-down). File an Acquisition or Abandonment of Secured Property
      (IRS Form 1099-A) if it accepts a Mortgage Release or acquires title to the
      property through foreclosure, using the borrower’s name and Social Security
      number (rather than a third-party company’s name and Tax Identiﬁcation Number).
      The servicer should not ﬁle a Cancellation of Debt (IRS Form 1099-C) since no
      debt is being canceled because Fannie Mae will not accept a short payoﬀ from
      the third-party company and will continue to hold the borrower liable. Completing
      a Transfer of Ownership The servicer must process any transfer of ownership
      in accordance with Chapter D1-4, Transfers of Ownership. The servicer must complete
      the applicable procedure in the following table depending on the type of transaction.
      Note: Regardless of the type of transaction in the table below, for all assumption
      types, the servicer must update the MERS eRegistry to provide notice of the
      assumption agreement for eMortgages and send the executed agreement to Fannie
      Mae''s eVault via MERS eDelivery. Published May 13, 2026 621 Type of Transaction
      Servicer Action An Exempt Transaction The servicer must process the transfer
      of ownership as described in the following table. Note: Fannie Mae does not
      require an exempt transferee to assume the mortgage loan except in connection
      with a release of liability or in conjunction with a mortgage loan modiﬁcation.
      If... Then the servicer must... Fannie Mae is the owner of record for the mortgage
      loan • prepare an assumption or assumption and release agreement, as applicable,
      and either ⚬ execute the agreement on Fannie Mae’s behalf if it has an assignment
      of mortgage, or ⚬ prepare the assignment of mortgage and send it to Fannie Mae’s
      SF CPM division (see F-4-02, List of Contacts) for execution. Note: Once Fannie
      Mae returns the executed assignment of mortgage to the servicer, the servicer
      is authorized to execute the assumption or assumption and release agreement,
      as applicable, must record the agreement if required by applicable law, and
      must send a copy of the executed agreement (original recorded, if applicable)
      to its document custodian. the servicer is the owner of record for the mortgage
      loan • execute the assumption or assumption and release agreement, as applicable;
      • record the agreement if required by applicable law; and • send a copy of the
      executed agreement (original recorded, if applicable) to its document custodian.
      Published May 13, 2026 622 Type of Transaction Servicer Action A Transfer Subject
      to State Law Restrictions The servicer must process the transfer of ownership
      as described in the following table. The servicer must include a release of
      liability provision in the transfer instruments if the borrower requested a
      release of liability and the mortgage insurer agreed to it. If... Then... Fannie
      Mae is the owner of record for the mortgage loan the servicer must either •
      execute the appropriate transfer documents on Fannie Mae’s behalf if it has
      an assignment of mortgage ⚬ an assumption or assumption and release agreement,
      as applicable, if there is no change in the interest rate; or ⚬ a mortgage loan
      modiﬁcation and assumption or assumption and release agreement, as applicable,
      if the interest rate changes; or • prepare the assignment of mortgage and send
      it to Fannie Mae’s SF CPM division (see F-4-02, List of Contacts) for execution.
      Note: Once Fannie Mae returns the executed assignment of mortgage to the servicer,
      the servicer is authorized to execute the appropriate documents, as applicable,
      must record the document(s) if required by applicable law, and must send a copy
      of the executed document(s) (original recorded, as applicable) to its document
      custodian. the servicer is the owner of record for the mortgage loan the servicer
      • is authorized to execute the appropriate documents, as applicable; • must
      record the document(s) if required by applicable law; and • must send a copy
      of the executed document(s) (original recorded, if applicable) to its document
      custodian. Regardless of the owner of record for the mortgage loan, if the servicer
      is required by applicable law to record the executed transfer documents, the
      servicer should request a title bring-down from the title insurer. The bring-down
      must • change the eﬀective date of the mortgage title policy to the date the
      transfer instruments were recorded, and • insure the mortgage loan as modiﬁed
      by the recorded agreement. Published May 13, 2026 623 Type of Transaction Servicer
      Action A Conventional Mortgage Loan With No Due-on- Sale Provision The servicer
      must process the transfer of ownership as described in the following table,
      if the release of liability is approved. If... Then the servicer must... Fannie
      Mae is the owner of record for the mortgage loan • prepare an assumption or
      assumption and release agreement, as applicable, and either ⚬ execute the agreement
      on Fannie Mae’s behalf if it has an assignment of mortgage, or ⚬ prepare the
      assignment of mortgage and send it to Fannie Mae’s SF CPM division (see F-4-02,
      List of Contacts) for execution. Note: Once Fannie Mae returns the executed
      assignment of mortgage to the servicer, the servicer is authorized to execute
      the assumption or assumption and release agreement, as applicable, must record
      the agreement if required by applicable law, and must send a copy of the executed
      agreement (original recorded, as applicable) to its document custodian. the
      servicer is the owner of record for the mortgage loan • execute the assumption
      or assumption and release agreement, as applicable; • record the agreement if
      required by applicable law; and • send a copy of the executed agreement (original
      recorded, if applicable) to its document custodian. Published May 13, 2026 624
      Type of Transaction Servicer Action A Non-Exempt Transaction With an Exception
      due to the Loan Type and Creditworthy Purchaser The servicer must process the
      transfer of ownership as described in the following table. The servicer must
      include a release of liability provision in the agreement if the borrower requested
      a release of liability and the mortgage insurer agreed to it. If... Then the
      servicer must... Fannie Mae is the owner of record for the mortgage loan • prepare
      an assumption or assumption and release agreement, as applicable, and either
      ⚬ execute the agreement on Fannie Mae’s behalf if it has an assignment of mortgage,
      or ⚬ prepare the assignment of mortgage and send it to Fannie Mae’s SF CPM division
      (see F-4-02, List of Contacts) for execution. Note: Once Fannie Mae returns
      the executed assignment of mortgage to the servicer, the servicer is authorized
      to execute the agreement, must record the agreement if required by applicable
      law, and must send a copy of the executed agreement (original recorded, as applicable)
      to its document custodian. the servicer is the owner of record for the mortgage
      loan • execute the assumption or assumption and release agreement, as applicable;
      • record the agreement if required by applicable law; • send a copy of the executed
      agreement (original recorded, if applicable) to its document custodian; and
      • instruct its Fannie Mae investor reporting system representative to change
      Fannie Mae’s accounting records to reﬂect the addition of this lifetime interest
      rate change limitation. Published May 13, 2026 625 Type of Transaction Servicer
      Action Note: When the transfer of ownership involves an ARM that does not include
      a lifetime interest rate change limitation in its terms, the servicer must include
      the following language in the assumption or assumption and release agreement,
      as applicable: “The interest rate I am required to pay after I assume this mortgage
      obligation and for the entire term of this mortgage loan will never be greater
      than __ percent.” In addition, if the mortgage loan is convertible to a ﬁxed-rate
      mortgage loan, the servicer also must include the following sentence: “This
      limitation also applies if I exercise my option to convert to a ﬁxed-rate mortgage
      loan.” To determine the appropriate interest rate to insert in this provision,
      the servicer should add 6% to the sum of the mortgage margin and the index that
      is in eﬀect on the date that the assumption statement is prepared. If the transaction
      has not closed within 30 days, the servicer should establish a new rate based
      on the latest available index. An Assumption of a Delinquent Mortgage Loan The
      servicer must process the transfer of ownership as described in the following
      table. If... Then the servicer must... Fannie Mae is the mortgagee of record
      and the servicer does not have an assignment of mortgage • prepare the assignment
      of mortgage, and • send the assignment of mortgage to Fannie Mae’s SF CPM division
      (see F-4-02, List of Contacts) for execution. Note: Once Fannie Mae returns
      the executed assignment of mortgage to the servicer, the servicer is authorized
      to execute the assumption or assumption and release agreement, as applicable,
      must record the agreement if required by applicable law, and must send a copy
      of the executed agreement (original recorded, if applicable) to its document
      custodian. the servicer (or MERS) is the mortgagee of record, or if Fannie Mae
      is the mortgagee of record and the servicer has an assignment of mortgage •
      execute the assumption or assumption and release agreement, as applicable; •
      record the agreement if required by applicable law; and • send a copy of the
      executed agreement (original recorded, if applicable) to its document custodian.
      Regardless of the owner of record for the mortgage loan, if the servicer is
      required by applicable law to record the executed transfer documents, the servicer
      should request a title bring-down from the title insurer. The bring-down must
      • change the eﬀective date of the mortgage title policy to the date the transfer
      instruments were recorded, and • insure the mortgage loan as modiﬁed by the
      recorded agreement. Published May 13, 2026 626 Type of Transaction Servicer
      Action An FHA or VA Mortgage Loan The servicer must process the transfer of
      ownership as described in the following table. If... Then the servicer must...
      Fannie Mae is the owner of record for the mortgage loan • prepare an assumption
      or assumption and release agreement, as applicable, and either ⚬ execute the
      agreement on Fannie Mae’s behalf if it has an assignment of mortgage; or ⚬ prepare
      the assignment of mortgage and send it, along with proof that FHA or VA, as
      applicable, approved the release of liability, if applicable, to Fannie Mae’s
      SF CPM division (see F-4-02, List of Contacts) for execution. Note: Once Fannie
      Mae returns the executed assignment of mortgage to the servicer, the servicer
      is authorized to execute the assumption or assumption and release agreement,
      as applicable, must record the agreement if required by applicable law or applicable
      FHA/VA program requirements, and must send a copy of the executed agreement
      (original recorded, if applicable) to its document custodian. the servicer is
      the owner of record for the mortgage loan • execute the assumption or assumption
      and release agreement, as applicable; • record the agreement if required by
      applicable law or applicable FHA/VA program requirements; and • send a copy
      of the executed agreement (original recorded, if applicable) to its document
      custodian. Recent Related Announcements The table below provides references
      to recently issued Announcements that are related to this topic. Announcements
      Issue Date Announcement SVC-2024-06 November 13, 2024 Announcement SVC-2022-02
      April 13, 2022 Announcement SVC-2019-03 May 15, 2019 Published May 13, 2026
      627'
  judgment: false
