Loan Modifications for an eMortgage

Any modifications to an eMortgage must comply with the requirements in Section D2–3.2, Home Retention Workout Options for the particular Fannie Mae mortgage loan modification, including but not limited to, the borrower’s execution and return of a copy of the Loan Modification Agreement (Form 3179). The following table describes the additional steps the servicer must take when an eMortgage is modified.

The servicer must...

Update the MERS eRegistry to provide notice of the modification agreement.

Maintain the original modification agreement in the servicing file and all associated modifying instruments.

Foreclosure, Bankruptcy or Other Legal Proceedings

The servicer must request a transfer in control and location in accordance with Temporary Possession by the Servicer in A2-1-04, Note Holder Status for Legal Proceedings Conducted in the Servicer’s Name. In states in which the seller/servicer must be the holder of an eNote prior to commencing legal action (such as foreclosure, filing a Proof of Claim or other filing, an action in a borrower’s bankruptcy proceedings or other litigation in connection with servicing a mortgage loan), the servicer must request a transfer in “Control and Location” of an eNote from Fannie Mae using the steps in the following table.

Step Servicer Action
1.

Submit a Request for Release/Return of Documents (Form 2009) and Fannie Mae eNote Transfer of Control Request (Form 197) to Fannie Mae’s Custodian Oversight Department at eMortgage_Custody@fanniemae.com at least three business days before the change in control and location is required.

2.

Accept the transfer on the same business day the servicer receives notification from Fannie Mae that the transfer has been initiated.

3.

Verify that the transfer has been completed and that the servicer now is in the CONTROLLER field on the MERS eRegistry and is also listed in the LOCATION field.

The servicer must initiate a timely transfer of control and location back to Fannie Mae if the foreclosure process for an eMortgage is canceled.

Refinancing an eNote Using a New York Consolidation, Extension and Modification Agreement (CEMA)

The servicer must follow the acceptable refinance and lending practices in accordance with Chapter A2–2, Refinance and Lending Practices. The following table describes the servicer’s responsibilities when performing a New York CEMA on an eNote.

The servicer must...

Request a change in Control and Location of the eNote from Fannie Mae.

Print the Authoritative Copy of the eNote.

Update the status on the eRegistry to “INACTIVE-Converted to Paper.”

Attach the following to the printed Authoritative Copy of the eNote:

  • date of conversion on the MERS eRegistry;

  • the name and company of the person converting the eNote;

  • documentation from the MERS eRegistry reflecting registration, transfer history, and status of the eNote;

  • a statement indicating that the MERS transfer history and future paper endorsements are incorporated into the Note as an allonge;

  • a statement signed by an officer of the servicer indicating that the processes and methods used in printing the eNote ensured that

    • the information and signatures on the face of the printed eNote are a complete and accurate reproduction of those reflected on the face of the Authoritative Copy of the eNote;

    • the servicer, at the time of the conversion to paper, maintained control and possession of the eNote;

    • the eNote can no longer be transferred to a new note holder; and

    • the MERS eRegistry shows that the electronic eNote has been converted to a paper-based Note; and

  • any other allonge appropriate for the Note.

Ensure that the paper-based eNote reflects that it is an eNote that has been converted to paper and that the paper-based eNote is now the original Note.

Complete an assignment of the converted eNote to the lender originating the CEMA using the allonge.

Deliver the converted (paper) eNote to the lender that is originating the CEMA.

The servicer must take the actions in the following table if the CEMA transaction is not completed.

The servicer must...

Complete a reversal on the MERS eRegistry and return the original eNote to an “Active” status.

Destroy the paper eNote.

Complete an eDelivery of the Authoritative Copy to Fannie Mae.

Initiate a transfer of control and location of the eNote on the eRegistry back to Fannie Mae.

Related Announcements

The following table provides references to Announcements that are related to this topic.

Announcements Issue Date
Announcement SVC–2016–09 October 19, 2016