Lenders must prepare an assignment of the mortgage to Fannie Mae for any mortgage that is not registered with MERS, although the assignment should not be recorded. If the mortgage seller is not going to service the mortgage, the unrecorded assignment to Fannie Mae must be executed by the servicer.
Lenders may use the standard Fannie Mae form of assignment. When a lender chooses not to use Fannie Mae’s standard assignment forms, the mortgage assignments that it prepares must meet the following requirements:
They must show the assignee as Fannie Mae.
They must not include a recitation that the assignment of the mortgage or lien is “without recourse.”
They must be prepared in recordable form, but they should not be recorded. Recordable form usually is whatever form the local recorder’s office requires.
If state law does not specifically address the information required for recordation, lenders must include the following information in the assignments:
the date of execution;
the lender’s name;
the borrower’s name;
a legal description of the property;
the recording information related to the mortgage, such as the deed book and page number or the instrument number;
the original mortgage amount;
the date of the mortgage;
an authorized signature;
an appropriate notarization, if one is required by state law;
the Fannie Mae Assignment Address (see E-1-03, List of Contacts), if required by the jurisdiction.
Occasionally, a lender may not be able to meet Fannie Mae’s specific assignment requirements because the local recorder’s office has not returned the recorded mortgage documents. To avoid delays in funding, Fannie Mae will purchase or securitize the mortgage if the only reason for the incomplete assignment was that the mortgage recordation data necessary for a recordable form was unavailable at the time of delivery. Fannie Mae has the right to complete any missing information without the lender’s authorization should the assignment need to be recorded at a later date.
Assignments of mortgages generally are not recordable in Puerto Rico. Therefore, because the originating lender remains the mortgagee of record, the unrecorded assignment of the mortgage to Fannie Mae must run from the originator of the mortgage to Fannie Mae. If the lender selling the mortgage to Fannie Mae is not the mortgage originator, it must make every effort to get the originator to execute an assignment of the mortgage to Fannie Mae (or, at least, to execute a blanket assignment that covers the mortgage). If it is unable to obtain an assignment from the mortgage originator for any reason, it (or the servicer, if the seller is not servicing the mortgage) must execute an individual unrecorded assignment of the mortgage to Fannie Mae.
No intervening assignments need to be prepared, recorded, or retained in the individual mortgage file.
The recordation of deeds of assignment is permitted in connection with direct mortgages (which are mortgages that are documented by a single instrument that combines the terms of the note and the terms of the mortgage). If the mortgage is a direct mortgage, the servicer must execute an assignment of the mortgage to Fannie Mae (which must be in recordable form, but unrecorded). In this case, the individual mortgage file must include a complete, unbroken chain of public deeds of assignment for the mortgage that evidence the transfer of title beginning with the originating lender and ending with the servicer.
The table below provides references to the Announcements that have been issued that are related to this topic.
|Announcement SEL-2013–03||April 9, 2013|