source:
  type: guide
  id: fnma-svc-c-1.2-04
  authority: Fannie Mae Servicing Guide C-1.2-04 — Satisfying the Mortgage Loan and
    Releasing the Lien
  description: Fannie Mae Servicing Guide C-1.2-04 — Satisfying the Mortgage Loan
    and Releasing the Lien.
  coverage_tier: operative
obligations:
- id: fnma-svc-c-1.2-04-full
  canonical_id: fnma-svc-c-1.2-04-full
  section: Fannie Mae Servicing Guide C-1.2-04 — Satisfying the Mortgage Loan and
    Releasing the Lien
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide C-1.2-04 — Satisfying the Mortgage Loan
      and Releasing the Lien
    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: 'C-1.2-04, Satisfying the Mortgage Loan and Releasing the Lien
      (05/15/2019) Introduction This topic contains the following: Published May 13,
      2026 215 Overview Satisfying the Mortgage Loan When Fannie Mae Is the Mortgagee
      of Record Satisfying the Mortgage Loan When Fannie Mae Is Not the Mortgagee
      of Record Overview Once payoﬀ funds are received, the servicer must take all
      actions necessary to satisfy a mortgage loan, including recording a release
      of lien in the real property records, in a timely manner. In addition, the servicer
      must determine and execute the appropriate satisfaction documents for the payoﬀ
      of an electronic mortgage loan, based on the requirements of the state in which
      the security property is located. For speciﬁc instructions, the servicer must
      follow the procedure Satisfying the Mortgage Loan and Releasing the Lien in
      F-1-09, Processing Mortgage Loan Payments and Payoﬀs. The servicer may request
      reimbursement of recording fees that cannot be legally charged to the borrower
      in accordance with Reimbursement for Recording Costs Associated with a Mortgage
      Loan Satisfaction or Charge-Oﬀ in F-1-05, Expense Reimbursement. Satisfying
      the Mortgage Loan When Fannie Mae Is the Mortgagee of Record The servicer that
      does not have a LPOA (or that has a power of attorney that does not cover release
      and satisfaction documents) must send any required release or satisfaction documents
      to Fannie Mae for execution, whether or not Fannie Mae is holding the custody
      documents. Satisfying the Mortgage Loan When Fannie Mae Is Not the Mortgagee
      of Record If Fannie Mae is not the mortgagee of record for a mortgage loan,
      the servicer must execute any required satisfaction documents in its own name
      (or in MERS’ name, if applicable for a MERS-registered mortgage loan). 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'
  judgment: false
