As soon as Fannie Mae receives the full amount of the repurchase proceeds, it will execute a quit-claim deed to convey the property to the responsible party (and will work with the responsible party to ensure that the reconveyance deed is appropriately recorded in the land records).
If the repurchase relates to a defaulted second-lien mortgage loan for which Fannie Mae advanced funds, the servicer must contact its Fannie Mae Servicing Representative (see F-4-03, List of Contacts) on how to report the repurchase (and how to remit the funds). Fannie Mae also instructs the servicer about how the servicer must report the repurchase (and remit the funds) when the servicer repurchases an acquired property after it submits an REOgram™ to Fannie Mae and the mortgage loan has been removed from Fannie Mae’s investor reporting system records.
The responsible party is required to cancel the related record accessible through the HAMP Reporting Tool on HMPadmin.com, in compliance with the MHA Program Administrator’s instructions. In connection with the cancellation of the record of the HAMP permanent mortgage loan modification, Fannie Mae has the right to recover all previously paid incentives to both the borrower and the servicer.