This Announcement introduces new requirements for the Fannie Mae Mortgage Release (formerly referred to as deed-in-lieu of foreclosure) processes as part of the Servicing Alignment Initiative. These new requirements are consistent with the aligned policies described in the Federal Housing Finance Agency’s Directive to Fannie Mae and Freddie Mac to help simplify and streamline the Mortgage Release processes. In addition, Fannie Mae is replacing all references in the Servicing Guide to the term “deed-in-lieu of foreclosure” with “Mortgage Release.”
Fannie Mae will now offer three exit options for borrowers completing a Mortgage Release, the three exit options are: