source:
  type: guide
  id: fnma-svc-d1-1-03
  authority: Fannie Mae Servicing Guide D1-1-03 — Evaluating a Second Lien Consideration
    of a Second Lien Mortgage Loan
  description: Fannie Mae Servicing Guide D1-1-03 — Evaluating a Second Lien Consideration
    of a Second Lien Mortgage Loan.
  coverage_tier: operative
obligations:
- id: fnma-svc-d1-1-03-full
  canonical_id: fnma-svc-d1-1-03-full
  section: Fannie Mae Servicing Guide D1-1-03 — Evaluating a Second Lien Consideration
    of a Second Lien Mortgage Loan
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide D1-1-03 — Evaluating a Second Lien Consideration
      of a Second Lien Mortgage Loan
    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: 'D1-1-03, Evaluating a Second Lien Consideration of a Second
      Lien Mortgage Loan (09/11/2024) The servicer must review and submit to Fannie
      Mae a request for a second lien consideration approval when one of the following
      situations apply: the second mortgage loan becomes 120 days delinquent, or the
      second mortgage loan has reached maturity plus 120 days; the ﬁrst mortgage loan
      is in default, regardless of the status of the second mortgage loan; or the
      second mortgage loan has an impediment or encumbrance making it impossible or
      impracticable to obtain clear title to the mortgage premises, and the mortgage
      loan is not subject to repurchase as outlined in A1-3-02, Fannie Mae-Initiated
      Repurchases, Indemniﬁcations, Make Whole Payment Requests and Deferred Payment
      Obligations. In addition, the servicer must follow the procedures in Requesting
      Approval for a Second Lien Consideration of a Second Lien Mortgage Loan in F-1-24,
      Requesting Fannie Mae’s Approval via Fannie Mae’s Servicing Solutions System
      for submitting a recommendation to Fannie Mae. See the Investor Reporting Manual
      for reporting a charge-oﬀ 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-2024-05 September 11,
      2024 Chapter D1-2, Servicing Renovation Mortgage Loans Introduction This chapter
      contains information on servicing renovation mortgage loans, which includes
      energy-related improvement mortgage loans. Published May 13, 2026 255'
  judgment: false
