D2-3.1-06, Notifying Fannie Mae of Lead-Based Paint Citations (11/12/2014)

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 OptionF-1-12, Preparing to Implement a Workout Option to report the action to Fannie Mae.