FNMA Servicing Guide D1-4 — Transfers of Ownership

fnma-svc-d1-4

Servicing Guide Chapter D1-4 governs enforcement of the due-on-sale/due-on-transfer provision and exempt transactions.

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source:
  type: regulation
  id: fnma-svc-d1-4
  authority: FNMA Servicing Guide D1-4 — Transfers of Ownership
  description: |
    Servicing Guide Chapter D1-4 governs enforcement of the due-on-sale/due-on-transfer provision and exempt transactions.
obligations:
  - id: fnma-svc-d1-4-due-on-sale-investigation
    canonical_id: fnma-svc-d1-4-due-on-sale-investigation
    section: FNMA Servicing Guide D1-4.1-01 — Determining Whether a Transfer of Ownership Is Permitted
    description: |
      When [LENDER] receives a request for a statement of account in
      connection with a possible transfer of ownership of a property, or if
      [LENDER] learns after the fact that a transfer has occurred, [LENDER]
      must review the mortgage loan instruments to determine whether the
      mortgage loan is subject to enforcement of the due-on-sale (or
      due-on-transfer) provision, investigate any questionable changes to
      determine whether a transfer of ownership has occurred, and determine
      whether any action needs to be taken to enforce the due-on-sale (or
      due-on-transfer) provision.
    type: do
    audit_question: For every statement-of-account request or after-the-fact transfer discovery on a Fannie Mae mortgage loan, can [LENDER] evidence review of the loan instruments, investigation of any questionable changes, and a documented enforcement determination for the due-on-sale (or due-on-transfer) provision?
    program_review: Does the program ensure that on a statement-of-account request tied to a possible transfer (or after-the-fact transfer discovery) the loan instruments are reviewed, questionable changes investigated, and a due-on-sale/due-on-transfer enforcement determination made?
    file_review: For transfer-related events, confirm the instrument review, investigation of questionable changes, and a documented enforcement determination. The compliance person judges whether the investigation was adequate.
    judgment: true
    feeds: []
    workflow_phase: servicing
    owner_role: default_servicing_analyst
    secondary_owner_role: compliance_officer
    cadence: per-event
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - fnma
      - servicing-guide
      - transfer-of-ownership
      - due-on-sale
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide D1-4.1-01
      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: Review the mortgage loan instruments to determine whether the mortgage loan is subject to
      drafter_attestation: |
        Copied verbatim from FNMA Servicing Guide snapshot cf63a82bbb4adfba (chapter D1-4) at 2026-05-22.
    promoted_at: '2026-05-23T00:25:11+00:00'
    promoted_from: fnma-svc-d1-4-roundb-v1.yaml
  - id: fnma-svc-d1-4-exempt-transactions-no-approval
    canonical_id: fnma-svc-d1-4-exempt-transactions-no-approval
    section: FNMA Servicing Guide D1-4.1-02 — Allowable Exemptions Due to the Type of Transfer
    description: |
      Unless the previous borrower requests a release of liability, [LENDER]
      must process exempt transactions (the categories enumerated in
      D1-4.1-02, including specified joint-tenant survivorships, junior-
      lienholder foreclosures, certain co-borrower transfers, occupant
      natural-person transfers, qualifying leasehold interests, certain
      subordinate-lien creations, and listed family-member / divorce-decree
      / inter vivos trust transfers) without reviewing or approving the
      terms of the transfer.
    type: do
    audit_question: For every D1-4.1-02 exempt transfer event on a Fannie Mae mortgage loan, can [LENDER] evidence processing without unilateral review/approval of the transfer terms (absent a prior-borrower release-of-liability request)?
    program_review: Does the program account for the D1-4.1-02 exempt-transfer categories — processing them without reviewing/approving the transfer terms unless the prior borrower requests a release of liability?
    file_review: Spot-check exemplar exempt-transfer events; confirm processing without unilateral term review/approval absent a release-of-liability request.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: default_servicing_analyst
    secondary_owner_role: compliance_officer
    cadence: per-event
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - fnma
      - servicing-guide
      - transfer-of-ownership
      - exempt-transactions
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide D1-4.1-02
      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: Unless the previous borrower requests a release of liability, the servicer must process the following exempt
      drafter_attestation: |
        Copied verbatim from FNMA Servicing Guide snapshot cf63a82bbb4adfba (chapter D1-4) at 2026-05-22.
    promoted_at: '2026-05-23T00:25:11+00:00'
    promoted_from: fnma-svc-d1-4-roundb-v1.yaml
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  - promoted_at: '2026-05-23T00:25:11+00:00'
    candidate_path: C:\Users\earlc\broker-tools\obligations\_remediation\_round_b_drafts\fnma-svc-d1-4-roundb-v1.yaml
    candidates_promoted: 2
    candidates_skipped_existing: 0

Verbatim regulatory text (2)

Verbatim provisions from FNMA Servicing Guide D1-4 — Transfers of Ownership — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

FNMA Servicing Guide D1-4.1-01 — Determining Whether a Transfer of Ownership Is Permitted

Review the mortgage loan instruments to determine whether the mortgage loan is subject to

Source: FNMA Servicing Guide D1-4.1-01 · source URL · snapshot cf63a82bbb4adfba

FNMA Servicing Guide D1-4.1-02 — Allowable Exemptions Due to the Type of Transfer

Unless the previous borrower requests a release of liability, the servicer must process the following exempt

Source: FNMA Servicing Guide D1-4.1-02 · source URL · snapshot cf63a82bbb4adfba