source:
  type: guide
  id: fnma-svc-d2-3.4-04
  authority: Fannie Mae Servicing Guide D2-3.4-04 — Qualifying Mortgage Assumption
    Workout Option
  description: Fannie Mae Servicing Guide D2-3.4-04 — Qualifying Mortgage Assumption
    Workout Option.
  coverage_tier: operative
obligations:
- id: fnma-svc-d2-3.4-04-full
  canonical_id: fnma-svc-d2-3.4-04-full
  section: Fannie Mae Servicing Guide D2-3.4-04 — Qualifying Mortgage Assumption Workout
    Option
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide D2-3.4-04 — Qualifying Mortgage Assumption
      Workout Option
    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: D2-3.4-04, Qualifying Mortgage Assumption Workout Option (11/08/2017)
      Introduction This topic contains information on qualifying a delinquent mortgage
      loan for a mortgage assistance workout option. Qualifying Mortgage Assumption
      Workout Option Qualifying Mortgage Assumption Workout Option If someone is interested
      in purchasing a property that secures a delinquent mortgage loan with an enforceable
      due-on-sale (or due-on-transfer) provision and assuming the mortgage loan, the
      servicer must take the actions listed in the following table. ✓ The servicer
      must... Obtain a complete BRP from the existing borrower to determine their
      inability to continue making payments on the mortgage loan (see D2-2-05, Receiving
      a Borrower Response Package for information on obtaining a complete BRP). Ensure
      that the property purchaser qualiﬁes for the mortgage loan in accordance with
      Fannie Mae's underwriting guidelines in place at the time of qualiﬁcation (see
      F-1-28, Reviewing a Transfer of Ownership for Credit and Financial Capacity.
      Order an appraisal or an interior BPO for the subject property. Also see D1-4.1-05,
      Enforcing the Due-on-Sale (or Due-on-Transfer) Provision for additional information.
      Obtain the mortgage insurer's written approval, if applicable. The servicer
      must follow the procedures in Obtaining MI Approval for a Conventional Mortgage
      Loan in F-1-17, Processing a Transfer of Ownership for information on obtaining
      mortgage insurer approval. Follow the procedures in Requesting Approval for
      the Assumption of a Delinquent Conventional Mortgage Loan in F-1-24, Requesting
      Fannie Mae’s Approval via Fannie Mae’s Servicing Solutions System to determine
      whether Fannie Mae is willing to forego enforcement of the due-on-sale (due-on-transfer)
      provision. Published May 13, 2026 393 ✓ The servicer must... Repurchase an MBS
      mortgage loan from the MBS pool before the assumption is ﬁnalized, if applicable.
      If approved by Fannie Mae, the servicer must document each approved assumption
      with an assumption agreement, or by an assumption and release agreement if a
      release of liability was agreed to, and record the agreement if required by
      state law. The servicer must follow the procedures in Completing a Transfer
      of Ownership in F-1-17, Processing a Transfer of Ownership for detailed requirements
      related to executing the assumption (or assumption and release) agreement. As
      a condition of approving the assumption, the servicer may charge the property
      purchaser an assumption fee (see Allowable Fees for Servicing in A2-3-05, Fees
      for Certain Servicing Activities). The servicer is authorized to pass any out-of-pocket
      expenses related to the assumption on to the purchaser. Recent Related Announcements
      There are no recently issued Announcements related to this topic. Chapter D2-4,
      Reporting Delinquent Mortgage Loans and Workout Options Introduction This chapter
      contains information on reporting delinquent mortgage loans and workout options.
  judgment: false
