Fannie Mae Servicing Guide C-1.2-05 — Charging for a Release of Lien
Fannie Mae Servicing Guide C-1.2-05 — Charging for a Release of Lien.
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Verbatim provisions from Fannie Mae Servicing Guide C-1.2-05 — Charging for a Release of Lien — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Fannie Mae Servicing Guide C-1.2-05 — Charging for a Release of Lien
C-1.2-05, Charging for a Release of Lien (05/15/2019) 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 release of lien is not related to a charge-off (see D1-1-02, Evaluating a First Lien Mortgage Loan for Charge-Off and Release of Lien). The servicer must follow the procedures in Reimbursement for Recording Costs Associated with a Mortgage Loan Satisfaction or Charge-Off in F-1-05, Expense Reimbursement in order to seek reimbursement from Fannie Mae.
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Source of record: https://claudeforcompliance.com/regs/fnma-svc-c-1-2-05/
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