Fannie Mae Single Family Servicing Guide D2-3.3-01, Fannie Mae Short Sale (08/13/2025)
Fannie Mae Single Family Servicing Guide topic D2-3.3-01 (Fannie Mae Short Sale). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Fannie Mae Single Family Servicing Guide D2-3.3-01, Fannie Mae Short Sale (08/13/2025) — 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.
Fannie Mae Single Family Servicing Guide D2-3.3-01
Reporting a Workout Option to Fannie Mae and the Investor Reporting Manual. Appropriately manage liquidation workout options that involve the borrower’s relinquishing ownership of the property to ensure that the borrower’s rights are appropriately protected. Provide evidence of the borrower’s indication of intent to pursue a short sale to Fannie Mae upon request. If the servicer is responding to an unsolicited short sale request from a borrower, it is authorized to proceed directly with evaluating the borrower for a Fannie Mae short sale without first conducting an evaluation for a home retention workout option. See
Fannie Mae Single Family Servicing Guide D2-3.3-01
Receiving a Borrower Response Package for information on evaluating the borrower for workout options. The servicer must follow the procedures in Requesting Reimbursement for Expenses Associated with Workout Options in F-1-05, Expense Reimbursement for requesting reimbursement of allowable fees. Communicating with a Borrower Regarding a Fannie Mae Short Sale The following table provides the servicer’s responsibilities when communicating, either verbally or in writing, about a short sale with the borrower.
Fannie Mae Single Family Servicing Guide D2-3.3-01
Receiving a Borrower Response Package). Note: If the mortgage loan is current or less than 60 days delinquent, the servicer must determine that the borrower’s monthly payment is in imminent default in accordance with Evaluating a Borrower for Imminent Default for Fannie Mae Short Sale or Fannie Mae Mortgage Release Eligibility in
Fannie Mae Single Family Servicing Guide D2-3.3-01
Determining if the Borrower’s Mortgage Payment is in Imminent Default. between 90 days and 18 months delinquent based on a complete BRP, unless one of the following conditions applies, in which case the servicer must evaluate the borrower for a Fannie Mae Short Sale without receiving a complete BRP: • the borrower failed a Fannie Mae Flex Modification Trial Period Plan within the previous 12 months (see
Fannie Mae Single Family Servicing Guide D2-3.3-01
Fannie Mae Flex Modification); • the borrower received a Fannie Mae Flex Modification and become 60 days or more delinquent within the first 12 months of the effective date of the mortgage loan modification without reinstating; • the borrower completed three or more mortgage loan modifications; • the borrower received a forbearance plan as a result of a hardship where applicable law has special requirements related to credit bureau reporting (e.g., disaster event) and became 90 days or more delinquent prior to the evaluation for a short sale; or • the mortgage loan is not secured by an investment property, as identified at origination, and the borrower’s classic FICO credit score is less than or equal to 620. Note: The FICO credit score must be no more than 90 days old as of the date of evaluation. If the servicer obtains multiple credit scores for a single borrower, it must select a representative credit score using the lower of two or the middle of three credit scores. If there are multiple borrowers, the servicer must determine the representative score for each borrower and use the lowest representative score as the credit score for the evaluation. greater than 18 months delinquent without receiving a complete BRP. Note: Fannie Mae also will agree to short sales for FHA, VA, or RD mortgage loans if they comply with all of the insurer’s or guarantor’s guidelines and do not result in a loss to Fannie Mae. If the borrower’s debt has been discharged pursuant to Chapter 7 of the U.S. bankruptcy code, the servicer
Fannie Mae Single Family Servicing Guide D2-3.3-01
Receiving a Borrower Response Package for additional information. the borrower’s housing expense-to-income ratio is less than or equal to 40% as calculated in accordance with Calculating the Borrower’s Housing Expense-to-Income Ratio in F-1-14, Processing a Fannie Mae Short Sale. The servicer must initially request a cash contribution of the greater of the following, rounded to the nearest $100 and not to exceed the amount of the deficiency: 20% of the borrower’s non-retirement cash reserves, or four times the contractual monthly mortgage loan payment including PITI. If the servicer does not escrow for T&I, it must estimate the borrower’s monthly tax and insurance premium amounts. If the servicer determines it is warranted based on its assessment of the borrower’s individual situation and
Fannie Mae Single Family Servicing Guide D2-3.3-01
Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure) (08/13/2025) Introduction This topic contains the following: General Requirements When Processing a Fannie Mae Mortgage Release Evaluating a Borrower to Determine Eligibility for a Fannie Mae Mortgage Release Evaluating a Borrower for Fannie Mae Mortgage Release Transition Options Evaluating the Credit Report for New Mortgage Loans Obtained Obtaining a Property Valuation and Evaluating the Condition of the Property Allowable Payments to Subordinate Lienholders Incentive Payments to Assist a Borrower with Relocation Expenses Evaluating a Borrower’s Ability to Make a Cash Contribution
Fannie Mae Single Family Servicing Guide D2-3.3-01
Fannie Mae-Initiated Repurchases, Indemnifications, Make Whole Payment Requests and Deferred Payment Obligations). The servicer must refer to the Property Preservation Matrix and Reference Guide for further clarification on handling delinquent and vacant or abandoned properties during the Mortgage Release process. Evaluating a Borrower to Determine Eligibility for a Fannie Mae Mortgage
Fannie Mae Single Family Servicing Guide D2-3.3-01
Receiving a Borrower Response Package). Note: If the mortgage loan is current or less than 60 days delinquent, the servicer must determine that the borrower’s monthly payment is in imminent default in accordance with Evaluating a Borrower for Imminent Default for Fannie Mae Short Sale or Fannie Mae Mortgage Release Eligibility in
Fannie Mae Single Family Servicing Guide D2-3.3-01
Determining if the Borrower’s Mortgage Payment is in Imminent Default. between 90 days and 18 months delinquent based on a complete BRP, unless one of the following conditions applies, in which case the servicer must evaluate the borrower for a Fannie Mae Mortgage Release without receiving a complete BRP: • the borrower failed a Fannie Mae Flex Modification Trial Period Plan within the previous 12 months (see