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© 2018 Fannie Mae Single Family Servicing Guide

Once payoff funds are received, the servicer must take all actions necessary to satisfy a mortgage loan, including recording a release of lien in the real property records, in a timely manner.

In addition, the servicer must determine and execute the appropriate satisfaction documents for the payoff of an electronic mortgage loan, based on the requirements of the state in which the security property is located.

For specific instructions, the servicer must follow the procedure Satisfying the Mortgage Loan and Releasing the Lien in F-1-11, Processing Mortgage Loan Payments and Payoffs The servicer may request reimbursement of recordation of recording fees that cannot be legally charged to the borrower in accordance with F-1-06, Expense Reimbursement Requesting Reimbursement for Recordation Fees .


Satisfying the Mortgage Loan When Fannie Mae Is the Mortgagee of Record

The servicer that does not have a LPOA (or that has a power of attorney that does not cover release and satisfaction documents) must send any required release or satisfaction documents to Fannie Mae for execution, whether or not Fannie Mae is holding the custody documents.

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Satisfying the Mortgage Loan When Fannie Mae Is Not the Mortgagee of Record

If Fannie Mae is not the mortgagee of record for a mortgage loan, the servicer must execute any required satisfaction documents in its own name (or in MERS’ name, if applicable for a MERS-registered mortgage loan).

Related Announcements

The following table provides references to Announcements that are related to this topic.

AnnouncementsIssue DateAnnouncement SVC-2017-05June 21, 2017

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