source:
  type: guide
  id: fnma-svc-e-3.2-02
  authority: Fannie Mae Servicing Guide E-3.2-02 — Initiating Foreclosure Proceedings
    on a First Lien Conventional Mortgage Loan
  description: Fannie Mae Servicing Guide E-3.2-02 — Initiating Foreclosure Proceedings
    on a First Lien Conventional Mortgage Loan.
  coverage_tier: operative
obligations:
- id: fnma-svc-e-3.2-02-full
  canonical_id: fnma-svc-e-3.2-02-full
  section: Fannie Mae Servicing Guide E-3.2-02 — Initiating Foreclosure Proceedings
    on a First Lien Conventional Mortgage Loan
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide E-3.2-02 — Initiating Foreclosure Proceedings
      on a First Lien Conventional 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: 'E-3.2-02, Initiating Foreclosure Proceedings on a First Lien
      Conventional Mortgage Loan (11/12/2014) Upon expiration of the breach letter,
      the servicer must expedite foreclosure proceedings to the greatest extent allowable
      under applicable law (and without exploring workout options) in the following
      circumstances, and provided the borrower is not eligible for relief from foreclosure
      in accordance with D2-3.4-01, Military Indulgence, or any state law that similarly
      restricts the right to foreclose: the property has been abandoned or vacated
      by the borrower and it is apparent the borrower does not intend to make the
      monthly payments; the borrower was advised in writing of available workout options
      and their written response indicates a lack of interest in the mortgage loan
      obligation, or provides permission for the commencement of foreclosure proceedings;
      or income from rental of the property is not being applied to the monthly mortgage
      loan payments and arrangements cannot be made to apply it. If the servicer services
      ﬁrst lien mortgage loans owned or securitized by Fannie Mae and also services
      subordinate lien mortgage loans for itself or other investors, the servicer
      must follow Fannie Mae’s foreclosure guidelines and process both the prereferral
      review and any foreclosure proceedings for the Fannie Mae mortgage loans in
      a timely manner. The servicer must not consider the status of, or impact on,
      any subordinate liens that the servicer is servicing for itself or other investors
      when performing a prereferral review or proceeding with a foreclosure action.
      However, the servicer that also services a subordinate lien mortgage loan may
      assign the ﬁrst lien mortgage loan to Fannie Mae and ﬁle the foreclosure of
      the ﬁrst lien mortgage loan in Fannie Mae’s name in order to avoid having to
      “sue itself” in the foreclosure action. Recent Related Announcements There are
      no recently issued Announcements related to this topic. Published May 13, 2026
      443'
  judgment: false
