For any mortgage loan secured by a one-unit investment property or a two- to four-unit property for which the servicer is considering a workout option, the servicer must notify Fannie Mae if it
learns of the issuance of a lead-based paint citation,
obtains other evidence of lead-based paint law violations, or
becomes aware of threatened or pending lead-based paint litigation.
If the security property is located in Massachusetts, the servicer must conduct an actual search to determine whether there are any outstanding lead-based paint citations against the property or the property owner.
The servicer must follow the procedures in Notifying Fannie Mae of Lead-Based Paint Citations in F-1-12, Preparing to Implement a Workout Option to report the action to Fannie Mae.