C-1.2-05: Charging for a Release of Lien (06/21/2017)
© Fannie Mae Single Family Servicing Guide
The servicer must not charge the borrower a fee for releasing, reconveying, or discharging Fannie Mae’s lien against the property, unless all of the conditions listed in the following table apply.
✓ | Conditions under which a release of lien fee may be charged |
The fee is paid to a third party for services rendered. For example, fees paid to a recorder of deeds, a notary public, or a trustee under a deed of trust (even if the trustee is the servicer’s affiliate or subsidiary). | |
Such fees are not prohibited by applicable law, the terms of the note or security instrument, or the mortgage insurer or guarantor. | |
The amount of the fee is consistent with other fees permitted by the mortgage insurer or guarantor, if applicable. |
The servicer must follow the procedures in Requesting Reimbursement for Recordation Fees in F-1-05, Expense Reimbursement (08/15/2018) in order to seek reimbursement from Fannie Mae.