For purposes of enforcing the due-on-sale (or due-on-transfer) provision, if any, in the security instrument, the servicer must consider all of the following situations to be a transfer of ownership:
the purchase of a property “subject to” the mortgage loan,
the assumption of the mortgage loan debt by the property purchaser,
any exchange of possession of property under a land sales contract or any other land trust device, and
in cases in which an inter vivos revocable trust is the borrower, any transfer of a beneficial interest in the trust.
When the servicer receives a request for a statement of account in connection with a possible transfer of ownership of a property, or if the servicer learns after the fact that a transfer has occurred, the servicer must take the actions listed in the following table.
| ✓ | The servicer 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. | |
Determine whether any action needs to be taken to enforce the due-on-sale (or due-on-transfer) provision. |
The statement of account that the servicer issues in connection with a possible transfer must clearly state the items listed in the following table.
| ✓ | The statement of account must clearly... |
|---|---|
State Fannie Mae’s right to enforce the due-on-sale (or due-on-transfer) provision, if applicable. | |
Describe Fannie Mae’s policy regarding enforcement of due-on-sale (or due-on-transfer) provisions. | |
Describe any exceptions or limiting conditions to the policy. |
Additional Information: https://www.fanniemae.com/content/guide/servicing/d1/4.1/01.html