source:
  type: guide
  id: fnma-svc-c-4.3-01
  authority: Fannie Mae Servicing Guide C-4.3-01 — Servicer Responsibilities Related
    to Investor Reporting
  description: Fannie Mae Servicing Guide C-4.3-01 — Servicer Responsibilities Related
    to Investor Reporting.
  coverage_tier: operative
obligations:
- id: fnma-svc-c-4.3-01-full
  canonical_id: fnma-svc-c-4.3-01-full
  section: Fannie Mae Servicing Guide C-4.3-01 — Servicer Responsibilities Related
    to Investor Reporting
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide C-4.3-01 — Servicer Responsibilities Related
      to Investor Reporting
    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: 'C-4.3-01, Servicer Responsibilities Related to Investor Reporting
      (04/08/2026) The following table outlines the servicer responsibilities related
      to reporting to Fannie Mae. ✓ The servicer must... Use an automated format to
      report all loan-level transactions on its entire mortgage loan portfolio using
      Fannie Mae’s investor reporting system. Ensure the transactions are reported
      in suﬃcient time for Fannie Mae to receive the notiﬁcations based on the following
      table. If the transaction is... Then the servicer must report... Published May
      13, 2026 234 ✓ The servicer must... a removal transaction (payoﬀ, repurchase
      or foreclosure action) • by 5 p.m. eastern time on the next business day if
      the servicer processes the transaction in its system. • by 8 p.m. eastern time
      on the next business day if the servicer does not process the transaction in
      its system on the ﬁrst business day of the month. • corrections to reporting
      errors for removal transactions by 5 p.m. eastern time on the second business
      day of the month following the reporting period. not a removal transaction •
      by 8 p.m. eastern time on the next business day after the servicer processes
      the transaction in its system. • by 8 p.m. eastern time on the 22 nd calendar
      day of the month for all summary reporting mortgage loans, if no payment is
      received from the borrower. If the 22 nd calendar day falls on a weekend or
      holiday, then the servicer must report the mortgage loan activity by 8 p.m.
      eastern time on the preceding business day. • corrections to reported activity,
      and any additional payment activity for the prior reporting period, by 8 p.m.
      eastern time on the next business day after the servicer processes the activity
      in its system but no later than 8 p.m. eastern time on the ﬁrst business day
      of the month following the reporting period. Reconcile the investor reporting
      system reports it receives from Fannie Mae to its internal records and make
      available to Fannie Mae upon request. Perform a thorough review and correct
      all transactional errors and data discrepancies, if applicable. The servicer
      must see Fannie Mae’s Investor Reporting Manual for additional reporting instructions,
      an explanation of proper reporting codes, and for the correct use of formulas
      and calculations. Recent Related Announcements The table below provides references
      to recently issued Announcements that are related to this topic. Announcements
      Issue Date Announcement SVC-2026-03 April 8, 2026 Announcement SVC-2024-06 November
      13, 2024 Published May 13, 2026 235 Published May 13, 2026 236 Part D, Providing
      Solutions to a Borrower Introduction This part contains information on providing
      solutions to borrowers. Published May 13, 2026 237 Subpart D1, Assisting the
      Borrower with Property-Related Issues and Legal Actions Introduction This subpart
      contains information on assisting the borrower with property-related issues
      and legal actions. Chapter D1-1, Requests for the Release of Property and/or
      Charge-Oﬀ of a Mortgage Loan Introduction This chapter contains information
      on requests for the release, of property and/or charge-oﬀ of a mortgage loan.
      D1-1-01, Evaluating a Request for the Release, or Partial Release, of Property
      Securing a Mortgage Loan (07/12/2023) Introduction This topic contains the following:
      Overview Evaluating a Request for the Release of a Beneﬁcial Easement or the
      Grant of a Burdensome Easement Evaluating a Request for the Lease of Oil, Gas,
      or Mineral Rights Evaluating a Request for the Partial Release of Real Property
      Evaluating a Request for the Addition of Land Evaluating a Request for the Partition
      of Real Property Evaluating a Request for the Substitution of Property Securing
      a Mortgage Loan Evaluating a Request for the Partial or Total Taking of Property
      Securing a Mortgage Loan by Condemnation or Eminent Domain Evaluating a Request
      to Lease Real Property for the Installation of a Semi-Permanent Structure Evaluating
      a Request for the Subdivision of Real Property Overview This topic provides
      information related to evaluating a request for the release, or partial release
      of property securing a mortgage loan. The evaluation requirements for each of
      the various types of requests are described in this topic. Published May 13,
      2026 238 To request a review for a release, or partial release, of property
      securing a mortgage loan, the borrower must submit an Application for Release
      of Security (Form 236) to the servicer. An application is considered complete
      when all required documentation and information, as outlined within this Servicing
      Guide and Form 236, has been obtained. When the servicer receives a complete
      application, the servicer must counsel the borrower to consider the costs and
      beneﬁts of any action covered by this policy prior to evaluating the request.
      The servicer must then evaluate each request in accordance with this Guide.
      If the complete application meets all the applicable requirements as outlined
      within this topic, then the servicer is authorized to approve the request. If
      upon the evaluation of the borrower''s request the servicer determines that
      it does not meet all of the applicable requirements as outlined within this
      topic, but the servicer determines that extenuating circumstances exist, the
      servicer must submit the request to Fannie Mae for a non-delegated review. Additionally,
      with the exception of eminent domain actions that fall within the policies in
      this Guide, all requests related to Texas Section 50(a)(6) loans must be escalated
      to Fannie Mae for review and decisioning. To submit a request for a non-delegated
      review, the servicer must submit the complete application and all required documentation
      to Fannie Mae’s SF CPM division (see F-4-02, List of Contacts). The servicer
      must also follow the processing requirements found in Processing a Request for
      the Release of Property Securing a Mortgage Loan in F-1-04, Evaluating a Request
      for the Release, or Partial Release, of Property Securing a Mortgage Loan. Evaluating
      a Request for the Release of a Beneﬁcial Easement or the Grant of a Burdensome
      Easement When a borrower requests a release or grant of an easement, the servicer
      must ensure that the borrower submits a completed Application for Release of
      Security (Form 236). A complete application must include all information and
      documentation required per the form. Request for the Release of a Beneﬁcial
      Easement: The servicer must evaluate the request for the release of a beneﬁcial
      easement to determine whether or not the release will adversely aﬀect the value
      of the property securing a mortgage loan by considering the following: the convenience,
      access, or other beneﬁts provided by the easement, which will be lost upon release,
      and the value of the property with the easement in place compared with the value
      of the property without the easement. The servicer must assess the eﬀect a release
      of the easement may have on the use or value of the property. The following
      table describes the servicer''s action based upon the impact to the property
      securing a mortgage loan. If the servicer has determined that releasing a beneﬁcial
      easement... Then the servicer... will not adversely aﬀect the value of the property
      securing a mortgage loan or restrict the borrower’s use of the property securing
      a mortgage loan is authorized to approve the request to release the easement
      on Fannie Mae’s behalf. Published May 13, 2026 239 If the servicer has determined
      that releasing a beneﬁcial easement... Then the servicer... will adversely aﬀect
      the value of the property securing a mortgage loan, and the LTV based on the
      estimated property value after the easement is released is less than 60% is
      authorized to approve the request to release the easement on Fannie Mae’s behalf.
      will adversely aﬀect the value of the property securing a mortgage loan, and
      the LTV based on the estimated property value after the easement is released
      is greater than or equal to 60% is authorized to approve the request to release
      the easement if the borrower agrees to reduce the mortgage loan balance by an
      amount suﬃcient to maintain the higher of • the LTV ratio immediately prior
      to releasing the easement, or • 60%. expected to adversely aﬀect the future
      use of marketability of the property securing a mortgage loan must decline the
      request to release the easement. Request for the Grant of a Burdensome Easement:
      The servicer must evaluate the request for the granting of a burdensome easement
      to determine the extent to which granting a burdensome easement adversely aﬀects
      the use, value or future marketability of the property securing a mortgage loan,
      which depends on the following: the degree and quantity of rights that are released
      with the easement; the community’s customs, attitudes, and prevalent practices
      regarding such easements; the value of the property without the easement in
      place compared with the value of the property with the easement in place; and
      the manner and extent of the use of the easement. The servicer is authorized
      to approve any request for a customary public utility easement as long as A
      subsurface utility easement does not extend under the house or other improvements
      to the property. An above-surface utility easement for distribution purposes
      that runs along any of the property lines or easements for drainage purposes
      that run along the rear property line if the easements do not extend more than
      12 feet from the property line, do not interfere with any of the improvements
      or use of the property, and do not present a health or safety hazard. The servicer
      must evaluate requests for other types of easements based on the speciﬁc circumstance
      of the request, as described in the following table. Published May 13, 2026
      240 If the servicer has determined that granting a burdensome easement... Then
      the servicer... will not adversely aﬀect the value of the property securing
      a mortgage loan is authorized to approve the request to grant the easement on
      Fannie Mae’s behalf. will adversely aﬀect the value of the property securing
      a mortgage loan, and the LTV based on the estimated property value with the
      easement in place is less than 60% is authorized to approve the request to grant
      the easement on Fannie Mae’s behalf. will adversely aﬀect the value of the property
      securing a mortgage loan, and the LTV based on the estimated property value
      without the easement in place is greater than or equal to 60% is authorized
      to approve the request to release the easement if the borrower agrees to reduce
      the mortgage loan balance by an amount suﬃcient to maintain the higher of •
      the LTV ratio immediately prior to releasing the easement, or • 60%. has potential
      long-term negative implications that could aﬀect the value of the property securing
      a mortgage loan or impact Fannie Mae''s ability to foreclose on the mortgage
      loan must decline the request to grant the easement. Any request to grant a
      burdensome easement on a limited basis (e.g., granting access to speciﬁc persons
      as opposed to all current and future owners of the property) must be denied.
      If a request to grant a burdensome easement includes subordinating the mortgage
      lien to the easement, the servicer is authorized to agree on Fannie Mae''s behalf
      to subordinate the mortgage lien to the easement if the easement is the type
      that is customary in the area and does not interfere with the property owner’s
      use or enjoyment of the property, and any cash consideration is applied to the
      outstanding mortgage loan debt in accordance with the mortgage loan documents.
      Evaluating a Request for the Lease of Oil, Gas, or Mineral Rights When a borrower
      requests to lease oil, gas, or mineral rights to the property, the servicer
      must ensure that the borrower submits a completed Form 236. A complete application
      must include all information and documentation required per the form. Before
      agreeing to a lease of oil, gas, or mineral rights, the servicer must consider
      the extent to which the Published May 13, 2026 241 subject property and neighboring
      properties may be aﬀected by the exercise of the rights covered in the lease.
      The servicer must take the following into consideration: The extent to which
      the rights granted by the lease infringe on the property owner’s rights. For
      example, if the lease permits removal of deposits by directional exploration
      from an area outside of the property, there may be little or no adverse eﬀect,
      depending on the location of the exploration area and the attitude of the community.
      On the other hand, if the lease allows for complete ingress and egress to explore
      any part of the property or to store or install equipment on it, the property
      may no longer have any real value as a residential property. Any hazards, nuisances,
      or damages that may result from the exercise of the rights granted by the lease.
      In mineral areas where subsidence from directional mining may be a problem,
      the potential extent of a hazard or nuisance can be determined by reviewing
      the past history of such operations in the locality and taking into consideration
      the property’s subsurface soil structure and the extent and depth of the proposed
      mining. In oil-producing areas, hazards, nuisances, and damages can result from
      drilling operation, ingress and egress, storage, pipeline transportation, ﬁre,
      explosion, or gusher wells. The eﬀect of these potential hazards or nuisances
      on the value of the property would depend on their intensity and closeness and
      the community’s attitude toward such hazards or nuisances. For example, in areas
      in which oil exploration is a major part of the economy, the risk may be considered
      acceptable, whereas it might be unacceptable in areas in which such exploration
      has a minor eﬀect on the economy. The servicer must determine whether the leasing
      of oil, gas or mineral rights meets the conditions in the following table. ✓
      Conditions required to approve a lease of oil, gas, or mineral rights The mortgage
      loan must be current. The mortgage must have been originated greater than 12
      months prior to the date of the request. The mortgage loan must not have been
      • greater than 30 days past due more than once in the most recent 12-month period,
      or • otherwise in default under the terms of the mortgage loan over the most
      recent 12-month period. Granting of oil, gas, or mineral leases is customary
      in the area. Exercise of the lease does not prevent its use for residential
      purposes or expose the residents to health or safety hazards. Any reduction
      in the value of the property as a result of the lease does not exceed the amount
      of any royalty payments received in exchange for the lease. Published May 13,
      2026 242 ✓ Conditions required to approve a lease of oil, gas, or mineral rights
      Any drill site located on the property lies outside of a 500-foot radius from
      the exterior walls of the residential dwelling or any other structures associated
      with the collateral property, including but not limited to detached garages,
      storage sheds, or accessory dwelling units. The servicer must evaluate requests
      for the leasing of oil, gas, and mineral rights based on the speciﬁc circumstances
      of the request, as described in the following table. If the leasing of oil,
      gas, or mineral rights... Then the servicer... meets all of the conditions and
      the LTV based on the estimated property value with the lease, any applicable
      drill site and/or ingress and egress across the property in place is less than
      60% is authorized to approve the lease on Fannie Mae’s behalf and waive Fannie
      Mae’s interest in any royalties under the current terms of the lease. meets
      all of the conditions and the LTV based on the estimated property value with
      the lease, any applicable drill site and/or ingress and egress across the property
      in place is greater than or equal to 60% is authorized to approve the lease
      on the Fannie Mae’s behalf if the borrower agrees to apply royalties to the
      mortgage loan balance by an amount suﬃcient to maintain the higher of • the
      LTV ratio immediately prior to the lease, or • 60%. does not meet the conditions
      as outlined above must deny the request. Evaluating a Request for the Partial
      Release of Real Property When a borrower requests a partial release of real
      property securing Fannie Mae’s mortgage loan, the servicer must ensure that
      the borrower submits a completed Form 236. A complete application must include
      all information and documentation required per the form. The servicer must determine
      whether the release of a portion of the real property meets the conditions in
      the following table. ✓ Conditions required to approve a partial release of security
      The mortgage loan must be current. The mortgage loan must have been originated
      greater than 12 months prior to the date of the request. Published May 13, 2026
      243 ✓ Conditions required to approve a partial release of security The mortgage
      loan must not have been • greater than 30 days past due more than once in the
      most recent 12-month period, or • otherwise in default under the terms of the
      mortgage loan over the most recent 12-month period. The priority of Fannie Mae’s
      mortgage lien must not be impacted. The release may not result in the property
      becoming inaccessible by public roads. The servicer must evaluate requests to
      release a portion of the real property securing the mortgage loan based on the
      speciﬁc circumstance of the request, as described in the following table. If
      the partial release of real property... Then the servicer... meets all of the
      conditions and the LTV based on the estimated property value after the release
      is less than 60% is authorized to approve the release of real property on Fannie
      Mae’s behalf. meets all of the conditions and the LTV based on the estimated
      property value after the release is greater than or equal to 60% is authorized
      to approve the release on Fannie Mae’s behalf if the borrower agrees to reduce
      the mortgage loan balance by an amount suﬃcient to maintain the higher of •
      the LTV ratio immediately prior to granting the release, or • 60%. does not
      meet any of the conditions. must deny the request. If the request to release
      a portion of the real property securing the mortgage loan includes a concurrent
      request to add land, the requirements for each request type must be met. Evaluating
      a Request for the Addition of Land When a borrower requests to add land to the
      real property securing the mortgage loan, the servicer must ensure that the
      borrower submits a complete Application for Release of Security (Form 236).
      A complete application must include all information and documentation required
      per the form. The servicer must determine whether the request to add the land
      to the real property securing the mortgage loan meets the conditions in the
      following table. Published May 13, 2026 244 ✓ Conditions required to approve
      an addition of land The mortgage loan must be current. The mortgage loan must
      have been originated greater than 12 months prior to the date of the request.
      The mortgage loan must not have been • greater than 30 days past due more than
      once in the most recent 12-month period, or • otherwise in default under the
      terms of the mortgage loan over the most recent 12-month period. The priority
      of Fannie Mae’s mortgage lien must not be impacted with the addition of land.
      The additional land parcel must be conveyed in its entirety and must have the
      same basic zoning requirements as the existing property (e.g., residential,
      agricultural). The entire property may contain only one dwelling unit. Limited
      additional non-residential structures located on the additional land are acceptable.
      The additional land must not contain any hazardous materials, dilapidated, or
      unsafe structures or other issues that may adversely aﬀect the value or marketability
      of the combined property. Any structures present on the additional land must
      be compliant with local building codes. The additional land parcel and the existing
      property securing a mortgage loan must be adjoined. Parcels that otherwise would
      be adjoined, but are divided by a road, are acceptable if the parcel without
      a residence is a non-buildable lot (e.g., waterfront properties where the parcel
      without the dwelling provides access to the water but may not be built upon
      due to local building codes). The servicer must evaluate requests to add land
      to the real property securing the mortgage loan based on the speciﬁc circumstances
      of the request, as described in the following table. If the addition of land...
      Then the servicer... meets all of the conditions and the LTV based on the estimated
      property value after the addition is less than 60% is authorized to approve
      the addition of real property on Fannie Mae’s behalf. Published May 13, 2026
      245 If the addition of land... Then the servicer... meets all of the conditions
      and the LTV based on the estimated property value after the addition is greater
      than or equal to 60% is authorized to approve the addition of real property
      on Fannie Mae’s behalf if the borrower agrees to reduce the mortgage loan balance
      by an amount suﬃcient to maintain the higher of • the LTV ratio immediately
      prior to the addition of land, or • 60%. does not meet any of the conditions
      must deny the request. If the request to add a portion of the real property
      securing the mortgage loan includes a concurrent request to release land, the
      requirements for each request type must be met. Evaluating a Request for the
      Partition of Real Property When a borrower requests a partition of the property,
      the servicer must ensure that the borrower submits a complete Application for
      Release of Security (Form 236). A complete application must include all information
      and documentation required per the form. The servicer must evaluate requests
      to partition real property based on the speciﬁc circumstance of the request,
      as described in the following table. ✓ Conditions required to approve a partition
      of real property The mortgage loan must be current. The mortgage loan must have
      been originated greater than 12 months prior to the date of the request. The
      mortgage loan must not have been • greater than 30 days past due more than once
      in the most recent 12-month period, or • otherwise in default under the terms
      of the mortgage loan over the most recent 12-month period. The priority of Fannie
      Mae’s mortgage lien must not be impacted. The partition of the property satisﬁes
      the subdivision laws of the county or jurisdiction, if applicable, and complies
      with all zoning requirements or codes. Published May 13, 2026 246 ✓ Conditions
      required to approve a partition of real property The primary dwelling must be
      located within the boundaries of a single parcel to be retained as encumbered
      under Fannie Mae’s mortgage lien. The servicer must evaluate requests to partition
      real property based on the speciﬁc circumstance of the request, as described
      in the following table. If the partition of real property... Then the servicer...
      meets all of the conditions and the LTV based on the estimated property value
      after the partition is less than 60% is authorized to approve the partition
      on Fannie Mae’s behalf. meets all of the conditions and the LTV based on the
      estimated property value after the partition is greater than or equal to 60%
      is authorized to approve the partition on Fannie Mae’s behalf if the borrower
      agrees to reduce the mortgage loan balance by an amount suﬃcient to maintain
      the higher of • the LTV ratio immediately prior to the partition, or • 60%.
      does not meet any of the conditions must deny the request. If the request for
      the partition of real property includes a request to release a borrower from
      liability under the mortgage loan, the servicer is authorized to approve the
      request if the borrower who retains possession of the property securing a mortgage
      loan has the ﬁnancial ability to make the mortgage loan payments. To evaluate
      a borrower’s ﬁnancial ability to make the mortgage payments the servicer should
      follow the procedures in F-1-28, Reviewing a Transfer of Ownership for Credit
      and Financial Capacity. Evaluating a Request for the Substitution of Property
      Securing a Mortgage Loan The servicer must submit all requests for the substitution
      of property securing a mortgage loan, along with its recommendation, to Fannie
      Mae’s SF CPM division (see F-4-02, List of Contacts). Prior to submitting the
      request to Fannie Mae, the servicer must ensure that the substitution of property
      securing the mortgage loan satisﬁes the subdivision requirements of the applicable
      jurisdiction(s) and complies with all applicable zoning requirements and building
      codes. A complete application must include all information and documentation
      required per the form. If Fannie Mae approves the substitution of property securing
      a mortgage loan, the servicer must take the actions described in the following
      table. Published May 13, 2026 247 ✓ If Fannie Mae agrees to the substitution
      of property securing a mortgage loan, the servicer must... Advise the borrower
      that they • are solely responsible for ﬁnancing the costs of the relocation
      of the dwelling, or demolition of the dwelling and reconstruction of a replacement
      dwelling, unless Fannie Mae agrees to absorb some of the costs; • bear all risks
      of damage to the house or failure to complete the move; and • must obtain ﬂood
      insurance coverage, if the new lot or location is in a Special Flood Hazard
      Area for which Fannie Mae requires ﬂood insurance. See Chapter B-3, Flood Insurance
      Requirements for Fannie Mae’s ﬂood insurance requirements. Verify that all building
      code and zoning requirements are met in connection with the relocation of the
      existing dwelling or demolition and reconstruction of a replacement dwelling.
      Ensure that Fannie Mae’s mortgage lien • remains a good and valid lien of the
      same priority during and after the move to a new lot, • is extended to cover
      the new lot before the move and is a good and valid lien of the same priority
      on the new lot, and • is released from the old lot after the move. Conﬁrm completion
      of the planned relocation of the improvements to the new location or demolition
      and reconstruction of the dwelling. Evaluating a Request for the Partial or
      Total Taking of Property Securing a Mortgage Loan by Condemnation or Eminent
      Domain The servicer must do and pay for whatever is necessary to protect Fannie
      Mae’s interest in the property securing the mortgage loan when there is a legal
      proceeding that may signiﬁcantly impact Fannie Mae’s interest. In the instance
      of eminent domain action, the servicer must also pursue any available legal
      remedies if it appears the compensation award oﬀer does not accurately reﬂect
      the value of the property. The servicer must follow the procedures in Protecting
      Fannie Mae’s Rights Regarding Taking of Property by Condemnation or Eminent
      Domain in F-1-04, Evaluating a Request for the Release, or Partial Release,
      of Property Securing a Mortgage Loan to protect Fannie Mae’s interest in the
      property and Fannie Mae’s rights under the security instrument. When a government
      takes eminent domain action against a property securing Fannie Mae’s mortgage
      loan, the servicer must ensure that an Application for Release of Security (Form
      236) is completed to adequately document the government action, and its impact
      to the property. A complete application must include all information and documentation
      required per the form. The servicer must refer to the terms of the security
      instrument to determine how compensation awards are to be distributed in the
      event of either a partial taking or total taking of a property securing a mortgage
      loan. Published May 13, 2026 248 However, the terms of the security instrument
      permit some ﬂexibility in determining how the proceeds should be applied if
      the borrower has abandoned the property or does not acknowledge a speciﬁc oﬀer
      to award compensation or settle a claim. The servicer is authorized to agree
      to Form 236 related to a partial or full taking of the property if all required
      documentation has been received, the compensation award is suﬃcient to fully
      satisfy the mortgage debt, and the compensation award is determined to be an
      accurate representation of the property’s value based on the servicer’s assessment
      of the provided property valuation. If the amount of the compensation award
      applied to the mortgage loan balance will not be suﬃcient to fully satisfy the
      mortgage debt, the servicer is authorized to agree for Form 236 if the provided
      valuation document indicates the current value of the property prior to the
      seizure, the value of the property to be seized, and the value of the remaining
      property; the provided valuation document was produced within six months of
      the date of the request; the compensation oﬀer is determined to be an accurate
      representation of the property’s value based on the servicer’s assessment of
      the provided property valuation; and the LTV is less than or equal to the LTV
      ratio of the loan immediately prior to the eminent domain action. If the value
      was not produced within six months of the date of the request, is determined
      to be inaccurate, or is missing one or more of the required values (current
      value of the property prior to the seizure, the value of the property to be
      seized, and the value of the remaining property) but all of the other conditions
      have been met, the servicer may evaluate the accuracy of the value or establish
      a value for the property for the purpose of assessing the compensation award
      by obtaining a value from one of the following sources: Fannie Mae’s servicing
      solutions system; Freddie Mac’s AVM; a third-party AVM; or the servicer’s own
      internal AVM, provided that the servicer is subject to supervision by a federal
      regulatory agency, and other servicer’s primary federal regulatory agency has
      reviewed the model. If Fannie Mae’s servicing solutions system, Freddie Mac’s
      AVM, the third-party AVM, or the servicer’s internal AVM does not render a reliable
      conﬁdence score, or if the value provided by the government agency lies outside
      of a 10% threshold in comparison to the value provided by an approved valuation
      model, the servicer must submit the application to Fannie Mae for review. If
      the servicer disagrees that the compensation award is an accurate representation
      of the property’s value, the documentation provided is incomplete, or the provided
      value is missing one of more of the required values and cannot be conﬁrmed via
      an alternative value, the servicer should contact Fannie Mae’s SF CPM division
      (see F-4-02, List of Contacts) to determine the action Fannie Mae wants it to
      take. If the borrower has abandoned the property or fails to respond within
      30 days to the servicer’s notiﬁcation that Published May 13, 2026 249 the government
      has oﬀered to pay a compensation award or settle a claim for damages in connection
      with a condemnation or taking by eminent domain, the servicer may disburse the
      proceeds without contacting the borrower. Generally, the servicer must apply
      the proceeds to reduce the mortgage loan debt unless there is only a partial
      taking of the property securing a mortgage loan and foreclosure proceedings
      have been initiated. In such cases, the servicer must contact Fannie Mae’s SF
      CPM division (see F-4-02, List of Contacts) to determine how to apply the proceeds,
      as Fannie Mae may prefer to use the proceeds to restore or repair the property.
      Evaluating a Request to Lease Real Property for the Installation of a Semi-
      Permanent Structure When a borrower requests to lease a portion of the property
      for the installation of any semi-permanent structure such as a wind turbine,
      cellular base station or other similar structure, the servicer must ensure that
      the borrower submits a complete Application for Release of Security (Form 236).
      A complete application must include all information and documentation required
      per the form. Before approving any agreement related to the placement of a semi-permanent
      structure on the security property, the servicer must consider the extent to
      which the subject property and neighboring properties may be aﬀected by the
      exercise of the rights covered in the lease. The servicer must take the following
      into consideration: The extent to which the rights granted by the agreement
      infringe on the property owner’s rights. Any hazards, nuisances, or damages
      that may result from the exercise of the rights granted by the lease. The servicer
      must determine whether the request to lease real property for the installation
      of a semi-permanent structure meets the conditions in the following table. ✓
      Conditions required to approve the installation of a semi-permanent structure
      The mortgage loan must be current. The mortgage loan must have been originated
      greater than 12 months prior to the date of the request. The mortgage loan must
      not have been • greater than 30 days past due more than once in the most recent
      12-month period, or • otherwise in default under the terms of the mortgage loan
      over the most recent 12-month period. Exercise of the lease does not prevent
      its use for residential purposes or expose the residents to health or safety
      hazards. Published May 13, 2026 250 ✓ Conditions required to approve the installation
      of a semi-permanent structure The installed structure lies outside of a 500-foot
      radius from the dwelling and any additional structures, including but not limited
      to detached garages, storage sheds, or accessory dwelling units. The servicer
      must evaluate requests to lease real property for the installation of a semi-permanent
      structure based on the speciﬁc circumstance of the request, as described in
      the following table. If leasing a portion of the real property for the installation
      of a semi-permanent structure... Then the servicer... meets all of the conditions
      and the LTV based on the estimated property values with the semi- permanent
      structure installed is less than 60% is authorized to approve the lease on Fannie
      Mae’s behalf and waive Fannie Mae’s interest in any contractual payments under
      the current terms of the lease. meets all of the conditions and the LTV based
      on the estimated property value with the semi- permanent structure installed
      is greater than or equal to 60% is authorized to approve the lease on Fannie
      Mae’s behalf if the borrower agrees to reduce the mortgage loan balance by an
      amount suﬃcient to maintain the higher of • the LTV ratio immediately prior
      to the lease becoming eﬀective, or • 60%. does not meet any of the conditions.
      must deny the request. Evaluating a Request for the Subdivision of Real Property
      When a borrower requests a subdivision of the property, the servicer must ensure
      that the borrower submits a complete Application for Release of Security (Form
      236). A complete application must include all information and documentation
      required per the form. The servicer must determine whether the request to subdivide
      real property meets the conditions in the following table. ✓ Conditions required
      to approve a request to subdivide real property The mortgage loan must be current.
      Published May 13, 2026 251 ✓ Conditions required to approve a request to subdivide
      real property The mortgage loan must have been originated greater than 12 months
      prior to the date of the request. The mortgage loan must not have been • greater
      than 30 days past due more than once in the most recent 12-month period, or
      • otherwise in default under the terms of the mortgage loan over the most recent
      12-month period. The priority of Fannie Mae’s mortgage lien must not be impacted.
      Any existing structures associated with the collateral property, including but
      not limited to detached garages, storage sheds, or accessory dwelling units,
      must be located completely within the boundaries of a single lot created through
      the subdivision. The subdivision of the property satisﬁes the subdivision laws
      of the county or jurisdiction, if applicable, and complies with all zoning requirements
      or codes. The servicer must evaluate requests to subdivide real property based
      on the speciﬁc circumstance of the request, as described in the following table.
      If the subdivision of real property... Then the servicer... meets all of the
      conditions and the LTV based on the estimated property value after the subdivision
      is less than 60% is authorized to approve the subdivision of real property on
      Fannie Mae’s behalf. meets all of the conditions and the LTV based on the estimated
      property value after the subdivision is greater than or equal to 60% is authorized
      to approve the subdivision of real property on Fannie Mae’s behalf if the borrower
      agrees to reduce the mortgage loan balance by an amount suﬃcient to maintain
      the higher of • the LTV ratio immediately prior to the subdivision, or • 60%.
      does not meet any of the conditions must deny the request. Recent Related Announcements
      The table below provides references to recently issued Announcements that are
      related to this topic. Published May 13, 2026 252 Announcements Issue Date Announcement
      SVC-2023-04 July 12, 2023 Announcement SVC-2021-03 June 09, 2021 Announcement
      SVC-2019-04 June 12, 2019'
  judgment: false
