A1-3-01, Requirements for Voluntary Repurchase (10/11/2023)

The servicer may initiate a request for Fannie Mae’s approval to repurchase a mortgage loan. Fannie Mae’s approval of the servicer’s request will depend, in part, on whether the mortgage loan is currently either an MBS mortgage loan or a portfolio mortgage loan.

Note: Fannie Mae will only approve requests to repurchase an MBS mortgage loan under the circumstances stated in Voluntary Repurchase of Certain MBS Mortgage Loans below.

Following the repurchase of any mortgage loan, losses are the responsibility and legal obligation of the responsible party. For modified mortgage loans, the responsible party must comply with all legal obligations in connection with the mortgage loan.

When the servicer or responsible party wishes to repurchase a mortgage loan that Fannie Mae holds in its portfolio, it must submit a written offer to the Non-Standard Repurchase Team (see F-4-02, List of ContactsF-4-02, List of Contacts). Fannie Mae will not approve requests to repurchase a portfolio mortgage loan in connection with a conditional tender of payment that is used as an alternative to refinancing the mortgage loan. See Selling Guide B2-1.3-04, Prohibited Refinancing Practices for additional information.

Under certain circumstances, an MBS mortgage loan (or Fannie Mae’s participation interest in it) must be repurchased from the pool (see Mandatory Repurchase of Certain MBS Mortgage Loans in A1-3-02, Fannie Mae-Initiated Repurchases, Indemnifications, Make Whole Payment Requests and Deferred Payment ObligationsA1-3-02, Fannie Mae-Initiated Repurchases, Indemnifications, Make Whole Payment Requests and Deferred Payment Obligations). However, the following table describes the circumstances under which the servicer has the option to repurchase the mortgage loan from the MBS pool.

The servicer of a special servicing option MBS mortgage loan also may repurchase the mortgage loan from the pool as an alternative to enforcing the due-on-sale (or due-on-transfer) provision as described above, but that repurchase requires prior approval by Fannie Mae. Similarly, after removing the mortgage loan from the MBS pool, the servicer may allow an assumption of the mortgage loan.

Regular servicing option MBS mortgage loans, and shared-risk special servicing option MBS mortgage loans for which the servicer's shared risk liability has not expired, that have been removed from an MBS pool, and have been modified are not eligible for redelivery to Fannie Mae unless Fannie Mae agrees otherwise.

The following table describes the requirements for the offer to repurchase mortgage loans.

After evaluating the offer, Fannie Mae will notify the requesting party of its acceptance or declination of any counteroffer the requesting party proposes.