Lenders may use Fannie Mae’s standard assignment forms for intervening assignments. In such cases, the lender must modify the following phrase in the first paragraph of the applicable assignment form to reflect the same applicable information for the designated assignee.
“… unto the Federal National Mortgage Association (or Fannie Mae, as applicable), a corporation organized and existing under the laws of the United States (herein “Assignee”), whose address is 1100 15th Street, NW, Washington, DC 20005, …”
When the mortgage seller and the mortgage servicer are not the same entity, Fannie Mae requires a recorded intervening assignment from the seller to the servicer—and then an assignment from the servicer to Fannie Mae (or MERS).
When the mortgage is serviced by the lender who originated it, but is being sold to Fannie Mae by another party who is an affiliate of the originating lender or an investment banker acting as a conduit, Fannie Mae accepts an assignment from the originating lender.
When the originating lender has transferred its interest in the mortgage to another party (with the exception of the special provision for Puerto Rico mortgages), intervening assignments are required in most instances.
Lenders must obtain all of the intervening assignments that Fannie Mae requires, record them in any instance in which Fannie Mae requires recordation, and retain them in the individual mortgage file to ensure that there is evidence of the complete chain of ownership for the mortgage. Each of the intervening assignments should have a corresponding endorsement on the mortgage note. However, this may not always be the case because of Fannie Mae’s policies that:
allow the mortgage note to be endorsed in blank;
require recordation of the assignment to the mortgage servicer when the mortgage seller does not service the mortgage, but do not require a corresponding note endorsement;
waive the requirement for intervening assignments when the mortgage originator services a mortgage that is sold to Fannie Mae by one of its affiliates or an investment banker acting as a conduit (but require all of the applicable note endorsements); and
permit the mortgage to be assigned to and registered with MERS.
The lender may be required to indemnify Fannie Mae (as described in A2-1-03, Indemnification for Losses), for any losses incurred by Fannie Mae due to the lender’s failure to obtain, record (if applicable), and retain the necessary intervening assignments. Alternatively, Fannie Mae may require the lender to repurchase the mortgage or the security property.
An assignment of the mortgage to Fannie Mae must be an individual assignment even if the recording jurisdiction accepts blanket assignments. (Blanket assignments are assignments that cover more than one mortgage.) Fannie Mae makes one exception to this—for a Puerto Rico mortgage, Fannie Mae accepts a blanket assignment from the mortgage originator (when the mortgage is sold to Fannie Mae by another lender). In this case, all of the mortgages covered by the blanket assignment must be delineated in the body of the assignment or in an attachment that is made part of the assignment.
Lenders may use blanket assignments for any intervening assignments that take place before the mortgage is delivered to Fannie Mae, as long as this type of assignment is acceptable to the applicable recording jurisdiction. Each blanket assignment must relate to a single recording jurisdiction.
The table below provides references to the Announcements that have been issued that are related to this topic.
|Announcement SEL-2016–02||February 23, 2016|