711.06E

Discounted Loan Payoff - Secondary Risk Mortgage Loans

For Non-PerformingNon-PerformingMortgage Loan that is subject to an uncured default. Secondary Risk Mortgage LoansSecondary Risk Mortgage LoansMortgage Loan where the Lender bears all losses until the Lender’s recourse obligations are exhausted. , the selection of a Discounted Loan Payoff as the Course of ActionCourse of ActionFor Non-Performing Mortgage Loans, loss mitigation activities per Part V: Servicing and Asset Management, Chapter 7. must be included in the SWAT submitted to Fannie Mae for approval.  The approved Discounted Loan Payoff amount will be the Asset ValueAsset ValueAs defined in the Loss Sharing Addendum. for purposes of determining the reduction in the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. ’s recourse obligation.

If a Discounted Loan Payoff is the approved Course of ActionCourse of ActionFor Non-Performing Mortgage Loans, loss mitigation activities per Part V: Servicing and Asset Management, Chapter 7. for a Non-PerformingNon-PerformingMortgage Loan that is subject to an uncured default. Secondary Risk Mortgage LoanSecondary Risk Mortgage LoanMortgage Loan where the Lender bears all losses until the Lender’s recourse obligations are exhausted. , the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. shall implement the Course of ActionCourse of ActionFor Non-Performing Mortgage Loans, loss mitigation activities per Part V: Servicing and Asset Management, Chapter 7. by:

  • indicating in the initial SWAT, or updated SWAT received by Fannie Mae no later than 10 Business DaysBusiness DaysAny day other than a Saturday, Sunday, day when Fannie Mae is closed, day when the Federal Reserve Bank of New York is closed, or for any MBS and required remittance withdrawal, a day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. before the proposed payoff date, that LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. has elected such Course of ActionCourse of ActionFor Non-Performing Mortgage Loans, loss mitigation activities per Part V: Servicing and Asset Management, Chapter 7. and identifying the anticipated payoff date;
  • delivering to Fannie Mae on the identified payoff date the payoff amount as calculated in Part V, Chapter 7: Non-Performing Mortgage Loans, Section 711.02C: Purchase Price for Mortgage Loans; and
  • the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. must follow the post-payoff actions as described in Part V, Chapter 2: Reporting and Remitting, Section 215: Post-Payoff Actions.