source:
  type: guide
  id: fnma-svc-e-1.3-01
  authority: Fannie Mae Servicing Guide E-1.3-01 — General Servicer Responsibilities
    for Non-Routine Matters
  description: Fannie Mae Servicing Guide E-1.3-01 — General Servicer Responsibilities
    for Non-Routine Matters.
  coverage_tier: operative
obligations:
- id: fnma-svc-e-1.3-01-full
  canonical_id: fnma-svc-e-1.3-01-full
  section: Fannie Mae Servicing Guide E-1.3-01 — General Servicer Responsibilities
    for Non-Routine Matters
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide E-1.3-01 — General Servicer Responsibilities
      for Non-Routine Matters
    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: 'E-1.3-01, General Servicer Responsibilities for Non-Routine
      Matters (10/11/2023) “Non-routine” litigation generally consists of an action
      that, regardless of whether Fannie Mae is a party to the proceeding Published
      May 13, 2026 408 seeks monetary damages against Fannie Mae, its oﬃcers, directors,
      or employees; challenges the validity, priority, or enforceability of a Fannie
      Mae mortgage loan or seeks to impair Fannie Mae’s interest in an acquired property
      and the handling of which is not otherwise addressed in the Servicing Guide;
      or presents an issue that may pose a signiﬁcant legal or reputational risk to
      Fannie Mae. The following table describes the servicer’s responsibilities related
      to non-routine litigation. ✓ The servicer must... Appropriately handle legal
      matters aﬀecting Fannie Mae mortgage loans. Notify Fannie Mae’s Legal department
      of any non-routine litigation by submitting a Non-Routine Litigation Form (Form
      20). Note: Fannie Mae reserves the right to direct and control all litigation
      involving a Fannie Mae mortgage loan, and the servicer and any law ﬁrm handling
      the litigation must cooperate fully with Fannie Mae in the prosecution, defense,
      or handling of the matter. Obtain Fannie Mae’s prior written approval before
      either • removing a case to federal court based on Fannie Mae’s Charter, or
      • appealing or otherwise challenging judgment in any foreclosure or bankruptcy
      proceeding. Note: The servicer must also notify Fannie Mae’s Legal department
      by submitting Form 20 if a borrower ﬁles an appeal or seeks other post-judgment
      relief in a foreclosure or bankruptcy proceeding. Periodically update Fannie
      Mae on the progress of non-routine litigation as necessary and appropriate.
      Provide Fannie Mae with suﬃcient opportunity in advance of any deadline or due
      date to review and comment upon proposed substantive pleadings, including: •
      motions, • responses, • replies, and • briefs. Notify retained counsel of its
      proposal to oﬀer any payment deferral or mortgage loan modiﬁcation and provide
      counsel with suﬃcient opportunity in advance of the solicitation to review and
      provide comments in connection with any solicitation materials. See D2-3.2-04,
      Payment Deferral, D2-3.2-05, Disaster Payment Deferral, and D2-3.2-06, Fannie
      Mae Flex Modiﬁcation for additional information. Published May 13, 2026 409
      Not all contested matters constitute non-routine litigation. The following represent
      examples that are considered routine litigation and need not be reported to
      Fannie Mae: a contested foreclosure action in which the borrower alleges a case-speciﬁc
      procedural or technical defect in the foreclosure, or a contested foreclosure
      action in which the borrower alleges a case speciﬁc payment application claim.
      In contrast, a contested foreclosure or bankruptcy action in which a borrower
      challenges the servicer’s ability to conduct a foreclosure or seek relief from
      stay based on a legal argument that, if upheld, could have broader application
      to other Fannie Mae mortgage loans is non- routine litigation because of the
      potential for negative legal precedent to extend beyond the immediate case.
      In order to assist the servicer in identifying non-routine litigation, the following
      table lists the categories of non- routine litigation and provides examples
      of matters that must be reported to Fannie Mae as non-routine litigation. Given
      the evolving nature of default-related litigation, it is not possible to provide
      an exhaustive list. Non-Routine Category Examples Actions that seek monetary
      relief against Fannie Mae. Any claim (including counterclaims, cross- claims,
      or third-party claims in foreclosure or bankruptcy actions) for damages against
      Fannie Mae or its oﬃcers, directors, or employees. Actions that challenge the
      validity, priority, or enforceability of a Fannie Mae mortgage loan or seek
      to impair Fannie Mae’s interest in an acquired property. An action seeking to
      demolish a property as a result of a code violation; An action seeking to avoid
      a lien based on a failure to comply with a law or regulation; An attempt by
      another lienholder to assert priority over Fannie Mae’s lien or extinguish Fannie
      Mae’s interests; A quiet title action seeking to declare Fannie Mae’s lien void;
      or An attempt by a borrower to aﬀect a cramdown of a mortgage loan in bankruptcy.
      Published May 13, 2026 410 Non-Routine Category Examples Actions that present
      an issue that may pose signiﬁcant legal or reputational risk to Fannie Mae.
      Any issue involving Fannie Mae’s conservatorship, its conservator FHFA, Fannie
      Mae’s status as a federal instrumentality, or an interpretation of Fannie Mae’s
      Charter; Any contention that Fannie Mae is a federal agency or otherwise part
      of the United States Government; Any “due process” or other constitutional challenge;
      Any challenge to the methods by which Fannie Mae does business; Any putative
      class action involving a Fannie Mae mortgage loan; A challenge to the standing
      of the servicer to conduct foreclosures or bankruptcies that, if successful,
      could create negative legal precedent with an impact beyond the immediate case;
      A challenge to the methods by which MERS does business or to its ability to
      act as nominee under a mortgage; Any “show cause orders” or motions for sanctions
      relating to a Fannie Mae mortgage loan, whether against Fannie Mae, the servicer,
      a law ﬁrm, or a vendor of the servicer or law ﬁrm; Any foreclosure on Native
      American tribal lands; Any environmental litigation relating to a Fannie Mae
      loan; A need to foreclose judicially in a state where non- judicial foreclosures
      predominate; Any claim invoking a Fannie Mae HAMP as a basis to challenge a
      foreclosure; Any cross-border insolvency proceeding under Chapter 15 of the
      Bankruptcy Code; Any claim of predatory lending or discrimination in loan origination
      or servicing; or Any claim implicating the interpretation of the terms of the
      Fannie Mae/Freddie Mac Uniform Mortgage Instruments. Recent Related Announcements
      The table below provides references to recently issued Announcements that are
      related to this topic. Published May 13, 2026 411 Announcements Issue Date Announcement
      SVC-2023-05 October 11, 2023 Announcement SVC-2023-03 May 10, 2023 Announcement
      SVC-2020-04 September 9, 2020'
  judgment: false
