© Fannie Mae Single Family Servicing Guide
Unless the previous borrower requests a release of liability, the servicer must process the following exempt transactions without reviewing or approving the terms of the transfer:
...
For a mortgage loan acquired by Fannie Mae after June 1, 2007, if a servicer reasonably believes that a due-on-transfer provision is unenforceable by law or would not be enforced by a court, the servicer is authorized to approve a transfer of an interest in the mortgaged property or a direct or indirect interest in the borrower (if an entity), provided the servicer has notified Fannie Mae’s Legal department (see Fsee F-4-03, List of Contacts) of the reason for its belief and Fannie Mae has either sent a notice of non-objection to the proposed transfer or not responded within 60 days of its receipt of the notice.
...
The servicer must follow the procedures in Obtaining MI Approval for a Conventional Mortgage Loan in F-1-26, Processing a Transfer of Ownership for information on obtaining mortgage insurer approval and in Completing a Transfer of Ownership in F-1-26, Processing a Transfer of Ownership for detailed requirements related to executing the assumption (or assumption and release) agreement.
If the mortgage loan is delinquent and the transferee is unable to bring the mortgage loan current, the servicer must evaluate him or her for all available workout options in accordance with D2-2, Requirements for Contacting a Borrower and D2-3, Fannie Mae’s Home Retention and Liquidation Workout Options. If the servicer determines that a mortgage loan modification is an appropriate workout solution, the servicer must
...
If the previous borrower requests a release of liability, the servicer must determine that the transferee’s credit and financial capacity is acceptable (see F-1-37, Reviewing a Transfer of Ownership for Credit and Financial Capacity (11/08/17)).
Related Announcements
The following table provides references to Announcements that are related to this topic.
...
Additional Information: https://www.fanniemae.com/content/guide/servicing/d1/4.1/02.html