D1-1-03, Evaluating a Second Lien Mortgage Charge-Off (11/12/2014)

If the servicer of a second lien mortgage loan determines that it is not in Fannie Mae’s best interest to pursue collection efforts or legal actions against the borrower, it must submit a recommendation for resolving the second lien mortgage loan delinquency to Fannie Mae.

The servicer must follow the procedures in Requesting Approval for a Charge-Off of a Second Lien Mortgage Loan in F-1-24, Requesting Fannie Mae’s Approval via Fannie Mae’s Servicing Solutions SystemF-1-24, Requesting Fannie Mae’s Approval via Fannie Mae’s Servicing Solutions System for submitting a recommendation to Fannie Mae.

See the Investor Reporting Manual for reporting a charge-off to Fannie Mae.