source:
  type: guide
  id: fnma-svc-f-1-24
  authority: Fannie Mae Servicing Guide F-1-24 — Requesting Fannie Mae's Approval
    via Fannie Mae's Servicing Solutions System
  description: Fannie Mae Servicing Guide F-1-24 — Requesting Fannie Mae's Approval
    via Fannie Mae's Servicing Solutions System.
  coverage_tier: operative
obligations:
- id: fnma-svc-f-1-24-full
  canonical_id: fnma-svc-f-1-24-full
  section: Fannie Mae Servicing Guide F-1-24 — Requesting Fannie Mae's Approval via
    Fannie Mae's Servicing Solutions System
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide F-1-24 — Requesting Fannie Mae's Approval
      via Fannie Mae's Servicing Solutions System
    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: 'F-1-24, Requesting Fannie Mae’s Approval via Fannie Mae’s Servicing
      Solutions System (09/11/2024) Introduction This Servicing Guide Procedure contains
      the following: Requesting Approval for the Assumption of a Delinquent Conventional
      Mortgage Loan Requesting Approval for a Workout Option for a New Transferee
      Owner Requesting Approval for a Non-Delegated Mortgage Release Case Requesting
      Approval for a Mortgage Release for a Second Lien Mortgage Loan Requesting Approval
      for a Charge-Oﬀ of a First Lien Mortgage Loan Requesting Approval for a Second
      Lien Consideration of a Second Lien Mortgage Loan Requesting Approval for a
      Non-Delegated Short Sale Case Requesting Approval for the Assumption of a Delinquent
      Conventional Mortgage Loan The servicer must evaluate a request for an assumption
      of a delinquent conventional mortgage loan that includes a due-on-sale (or due-on-transfer)
      provision in accordance with Allowing a Delinquent Mortgage Loan to be Assumed
      in D1-4.2-02, Conventional Mortgage Loans That Include a Due- on-Sale (or Due-on-Transfer)
      Provision. Published May 13, 2026 672 To determine whether Fannie Mae is will
      waive the enforcement of the due-on-sale (or due-on-transfer) provision and
      approve the assumption, the servicer must provide through Fannie Mae’s servicing
      solutions system the information described in the following table. ✓ The servicer
      must provide through Fannie Mae’s servicing solutions system… A description
      of the borrower’s ﬁnancial circumstances. The property market value analysis
      from an appraisal or an interior BPO. Information about any conditions of the
      mortgage insurer’s approval, if applicable. The servicer’s recommendation to
      waive the due-on-sale (or due-on-transfer) provision and permit the assumption
      based on the creditworthiness of the prospective purchaser. Fannie Mae will
      work with the servicer and the mortgage insurer, if applicable, to determine
      the exact terms of the assumption, including any cash contribution that must
      be made by the borrower or the prospective purchaser. Fannie Mae will not approve
      an assumption if the mortgage loan has subordinate ﬁnancing unless arrangements
      are made to pay oﬀ the subordinate lien(s). Note: The servicer does not need
      to make any changes to its monthly investor reporting system reports to reﬂect
      mortgage assumptions for portfolio mortgage loans. Requesting Approval for a
      Workout Option for a New Transferee Owner The servicer must request Fannie Mae’s
      approval for any workout option it determines is appropriate for a new transferee
      owner in accordance with D1-4.1-02, Allowable Exemptions Due to the Type of
      Transfer. The servicer must comply with the requirements shown in the following
      table. ✓ Servicer Action Submit the case into Fannie Mae’s servicing solutions
      system under the recommended workout option. Indicate in the case comments section
      that the case is associated with a transfer of ownership or an assumption. Fannie
      Mae will determine the terms of the workout and any related assumption. Published
      May 13, 2026 673 Requesting Approval for a Non-Delegated Mortgage Release Case
      The servicer must evaluate a borrower for a Mortgage Release in accordance with
      D2-3.3-02, Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure). The following
      table outlines the required servicer actions to request Fannie Mae’s prior written
      approval for a Mortgage Release as a non-delegated case. Step Servicer Action
      1 Transmit the following through Fannie Mae’s servicing solutions system: •
      a description of the borrower''s ﬁnancial circumstances, • a property valuation,
      • general summary information about satisfaction of the eligibility criteria
      for Mortgage Release, • an indication of whether the borrower can make a cash
      contribution to reduce Fannie Mae''s loss, and • its recommendation to Fannie
      Mae. 2 Obtain Fannie Mae’s decision regarding the Mortgage Release through Fannie
      Mae’s servicing solutions system. Fannie Mae will make its decision available
      shortly after Fannie Mae receives the servicer’s recommendation. If... Then
      the servicer must... Fannie Mae approves the Mortgage Release continue to step
      3. Fannie Mae denies the Mortgage Release and instructs the servicer to continue
      with foreclosure report the initiation of foreclosure in the next delinquency
      status information it transmits to Fannie Mae after the date of Fannie Mae''s
      decision. Do not continue to step 3. 3 Obtain the letter including the terms
      and conditions of Fannie Mae''s decision about acceptance of the Mortgage Release
      through Fannie Mae’s servicing solutions system. 4 Have its attorney prepare
      the deed of conveyance and ﬁle a claim with the insurer or guarantor. Also see
      E-4.2-01, Completing Conveyance Documents. 5 File a claim with the insurer or
      guarantor, if applicable. Published May 13, 2026 674 Requesting Approval for
      a Mortgage Release for a Second Lien Mortgage Loan The servicer must evaluate
      a borrower of a second lien mortgage loan for a Mortgage Release in accordance
      with D2-3.4-02, Oﬀering a Mortgage Release (Deed-in-Lieu of Foreclosure) for
      a Second Lien Mortgage Loan. The following table outlines the required servicer
      actions to request Fannie Mae’s prior written approval for a Mortgage Release.
      Step Servicer Action 1 Transmit the following through Fannie Mae’s servicing
      solutions system: • a description of the borrower''s ﬁnancial circumstances,
      • a property valuation, • general summary information about satisfaction of
      the eligibility criteria for a Mortgage Release, • an indication of whether
      the borrower can make a cash contribution to reduce Fannie Mae''s loss, • an
      analysis of the ﬁrst lien mortgage loan servicer’s intentions and the possibility
      of recovery on the second lien mortgage loan if the mortgage loan is a second
      lien mortgage loan and Fannie Mae does not have an interest in the ﬁrst lien
      mortgage loan, and • its recommendation. Note: If the borrower has non-retirement
      cash reserves greater than $50,000, the servicer must specify that when it submits
      the case. Speciﬁcally, the servicer must enter the dollar amount, as applicable,
      in the “assets” ﬁeld in Fannie Mae’s servicing solutions system. 2 Obtain the
      letter including the terms and conditions of Fannie Mae''s decision about acceptance
      of the Mortgage Release through Fannie Mae’s servicing solutions system. This
      letter will be available shortly after Fannie Mae receives the servicer’s recommendation.
      3 Have its attorney prepare the deed of conveyance and ﬁle a claim with the
      insurer or guarantor. Also see E-4.2-01, Completing Conveyance Documents. Requesting
      Approval for a Charge-Oﬀ of a First Lien Mortgage Loan The servicer must evaluate
      a ﬁrst lien mortgage charge-oﬀ pursuant to D1-1-02, Evaluating a First Lien
      Mortgage Loan for Charge-Oﬀ and Release of Lien. The servicer must obtain a
      property valuation when requesting Fannie Mae’s prior approval for a charge-oﬀ
      of a ﬁrst lien mortgage loan, if applicable. The following table provides additional
      requirements for all property valuations for a ﬁrst lien mortgage loan charge-oﬀ.
      Published May 13, 2026 675 ✓ The servicer must... Request the property valuation
      order through Fannie Mae''s servicing solutions system. Include the cost of
      the property valuation order in the MI claim, when applicable. Obtain the results
      of the property valuation order through Fannie Mae''s servicing solutions system
      within 10 calendar days from the date the servicer submits the request. Note:
      Property valuation results may take longer in the event of unusual market conditions
      or if access to the property is delayed. The servicer must provide all required
      documentation as applicable from the table below when submitting a charge oﬀ
      request to Fannie Mae via Fannie Mae''s servicing solutions system. ✓ Required
      Documentation Documentation to support a speciﬁc circumstance outlined in D1-1-02,
      Evaluating a First Lien Mortgage Loan for Charge-Oﬀ and Release of Lien. Fully
      completed Charge-Oﬀ Questionnaire (Form 198). Hardship and ﬁnancial information
      for each borrower, if available. Documentation indicating the occupancy status
      and property condition, including hazard claim status, repair and/or demolition
      estimates, if applicable. A current value from either an appraisal or BPO, as
      applicable. Current payoﬀ amount including all advances. Documentation related
      to any additional unpaid judgments and liens. For all approved charge-oﬀs, the
      servicer must take the steps outlined in the following table. ✓ The servicer
      must... Notify tax authorities that future tax bills should be sent to the borrower
      (if applicable). Published May 13, 2026 676 ✓ The servicer must... Record the
      release of lien in the real property records. Inform the borrower in writing
      that • The lien against the subject property has been released, • The servicer
      will not/no longer pursue foreclosure proceedings, and • The borrower is responsible
      for the payment of property taxes, insurance, and maintenance of the property
      in accordance with applicable requirements. Remove the mortgage loan from Fannie
      Mae''s investor reporting system by reporting an Action Code 70 or 72 as indicated
      by Fannie Mae in its approval letter. Note: To the extent feasible, Fannie Mae
      will require the charge-oﬀ and lien release to be conducted simultaneously,
      unless awaiting receipt of proceeds associated with the mortgage loan. In the
      event of proceeds, the servicer must remit the proceeds via the CRS as a “Special
      Remittance” using the Remittance Type as indicated by Fannie Mae in its approval
      letter. Also see the Investor Reporting Manual and Fannie Mae''s CRS User Guide.
      Requesting Approval for a Second Lien Consideration of a Second Lien Mortgage
      Loan The servicer must evaluate a second lien mortgage loan for a second lien
      consideration in accordance with D1-1-03, Evaluating a Second Lien Consideration
      of a Second Lien Mortgage Loan. The servicer must obtain a property valuation
      when requesting Fannie Mae’s prior approval for a second lien consideration
      of a second lien mortgage loan. The following table provides additional requirements
      for all property valuations for a second lien consideration. ✓ The servicer
      must... Request the property valuation order through Fannie Mae''s servicing
      solutions system. Include the cost of the property valuation order in the MI
      claim, when applicable. Obtain the results of the property valuation order through
      Fannie Mae''s servicing solutions system within 10 calendar days from the date
      the servicer submits the request. Note: Property valuation results may take
      longer in the event of unusual market conditions or if access to the property
      is delayed. Published May 13, 2026 677 Fannie Mae’s decision on whether or not
      to charge oﬀ the second lien mortgage loan debt will depend on the circumstances
      outlined in the following table. If... Then... Fannie Mae has an interest in
      both the ﬁrst and second lien mortgage loans Fannie Mae may choose to consolidate
      the two mortgage loans and modify the borrower’s payments instead of charging
      oﬀ the debt. Fannie Mae does not have an interest in the ﬁrst lien mortgage
      loan Fannie Mae may decide to either • pursue a workout for the second lien
      mortgage loan, • pay oﬀ the ﬁrst lien mortgage loan and foreclose the second
      lien mortgage loan, or • charge oﬀ the second lien mortgage loan debt. The servicer
      must provide all required documentation as applicable from the table below when
      submitting a second lien consideration request to Fannie Mae via Fannie Mae’s
      servicing solutions system. ✓ Required Documentation A current value from either
      an appraisal or BPO, as applicable. Current payoﬀ amount including all advances.
      In addition to a current payoﬀ for the ﬁrst lien, if applicable. Title search
      dated within 60 days of submission. Credit report dated within 60 days of submission.
      Requesting Approval for a Non-Delegated Short Sale Case The servicer must evaluate
      a borrower for a short sale in accordance with D2-3.3-01, Fannie Mae Short Sale.
      The following table outlines the required servicer actions to request Fannie
      Mae’s prior written approval for a short sale as a non-delegated case. Published
      May 13, 2026 678 Step Servicer Action 1 Submit the following through Fannie
      Mae’s servicing solutions system: • a description of the borrower’s ﬁnancial
      circumstances, • a property market value analysis, • the speciﬁcs about the
      purchase oﬀer, and • the servicer’s recommendation to Fannie Mae. Note: If the
      borrower has non-retirement cash reserves greater than $50,000, the servicer
      must specify that when it submits the case. Speciﬁcally, the servicer must enter
      the dollar amount, as applicable, in the “assets” ﬁelds in Fannie Mae’s servicing
      solutions system. 2 Send the same information submitted through Fannie Mae’s
      servicing solutions system and any required documentation to the mortgage insurer
      by overnight mail delivery (whenever possible). Note: Fannie Mae and the mortgage
      insurer must be notiﬁed of a sales oﬀer immediately and simultaneously to avoid
      jeopardizing Fannie Mae’s claim under the MI contract. 3 Obtain the letter including
      the terms and conditions of Fannie Mae’s decision through Fannie Mae’s servicing
      solutions system. This letter will be available shortly after Fannie Mae receives
      the servicer’s recommendation. 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-2022-04 June 8, 2022 Announcement SVC-2021-02 March 10, 2021
      Announcement SVC-2020-03 July 15, 2020 Announcement SVC-2019-03 May 15, 2019
      Published May 13, 2026 679'
  judgment: false
