source:
  type: guide
  id: fnma-svc-d1-1-02
  authority: Fannie Mae Servicing Guide D1-1-02 — Evaluating a First Lien Mortgage
    Loan for Charge-Oﬀ and Release of Lien
  description: Fannie Mae Servicing Guide D1-1-02 — Evaluating a First Lien Mortgage
    Loan for Charge-Oﬀ and Release of Lien.
  coverage_tier: operative
obligations:
- id: fnma-svc-d1-1-02-full
  canonical_id: fnma-svc-d1-1-02-full
  section: Fannie Mae Servicing Guide D1-1-02 — Evaluating a First Lien Mortgage Loan
    for Charge-Oﬀ and Release of Lien
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide D1-1-02 — Evaluating a First Lien Mortgage
      Loan for Charge-Oﬀ and Release of 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: 'D1-1-02, Evaluating a First Lien Mortgage Loan for Charge-Oﬀ
      and Release of Lien (09/11/2024) The servicer must review and submit to Fannie
      Mae for approval a request for approval to cease collection eﬀorts on a delinquent
      mortgage loan when the following requirements have been met: the mortgage loan
      becomes 120 days delinquent, or the mortgage loan has reached maturity plus
      120 days, all appropriate measures to collect under the Servicing Guide have
      been exhausted, and the servicer has deemed the debt to be uncollectable, the
      mortgage loan is secured by a property that was the borrower''s principal residence
      at loan origination, any home on the property is currently occupied, and the
      land and any structures on the land are being maintained and preserved in compliance
      with municipal requirements as supported by property inspections, and at least
      one of the following conditions apply: a foreclosure sale cannot be completed
      for a ﬁrst lien conventional mortgage loan that Fannie Mae owns or securitizes;
      the mortgage loan, or the property securing it, is the subject of an agreement
      to resolve a legal dispute, or a court has permitted the mortgage loan to be
      satisﬁed (see D1-6-02, Handling Notices of Liens, Legal Action, Other Actions
      Impacting Fannie Mae’s Interest ); Note: When an issue is presented that may
      pose a signiﬁcant legal or reputational risk to Fannie Mae, the servicer must
      follow the procedures in accordance with E-1.3-01, General Servicer Responsibilities
      for Non-Routine Matters. the property securing the mortgage loan is or has been
      the subject of either: a government seizure (see D1-6-03, Handling Property
      Forfeitures and Seizures ); foreclosure by condominium/homeowner''s association
      and the property has been sold; or a receivership proceeding and the property
      has been sold; Published May 13, 2026 253 the mortgage loan has an impediment
      or encumbrance making it impossible or impracticable to obtain clear title to
      the mortgaged 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 ; the UPB is $5,000
      or less and the total indebtedness is $15,000, or less; Note: In the event the
      UPB is greater than $5,000 or the indebtedness exceeds $15,000, and all other
      criteria has been met, the request may be submitted for consideration. the property
      securing the mortgage loan is a unit in a condominium, cooperative, or similar
      project, and either the unit is damaged, and the repair of the unit is not feasible
      because of the physical condition of the remainder of the project; or the project
      is not presently economically viable; or the governing body or a court has terminated
      the association; the property has suﬀered a natural or man-made disaster that
      results in earth movement (e.g., a landslide or a mudslide) such that rebuilding
      on the land is impracticable or impossible; or a third-party is willing to accept
      legal responsibility for the property securing the mortgage loan. Note: Conﬁrmation
      of transfer of ownership to the third party will be required if the charge-oﬀ
      is approved. Fannie Mae must determine if a charge-oﬀ and release of the related
      ﬁrst lien is the most beneﬁcial outcome for the mortgage loan. The servicer
      must follow the procedures in F-1-24, Requesting Fannie Mae’s Approval via Fannie
      Mae’s Servicing Solutions System for detailed requirements related to requesting
      prior approval and, if approved, completing a charge-oﬀ/lien release, the Investor
      Reporting Manual for reporting a charge-oﬀ to Fannie Mae, and Reimbursement
      for Recording Costs Associated with a Mortgage Loan Satisfaction or Charge-Oﬀ
      in F-1-05, Expense Reimbursement . 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
      Announcement SVC-2019-03 May 15, 2019 Published May 13, 2026 254'
  judgment: false
