Fannie Mae unveiled three new exit options for borrowers involved in the deed-in-lieu of foreclosure process Wednesday.
The guidelines are part of the servicing alignment initiative and mirror policies previously outlined by the Federal Housing Finance Agency for Fannie Mae and Freddie Mac. Fannie also announced it has renamed the deed-in-lieu of foreclosure process as a 'mortgage release' and is using that term throughout the servicing guidebook.
The government-sponsored enterprise said servicers are required to implement the policies for all loans under consideration for mortgage release on or after March 1, 2013.
Fannie noted the GSE is now offering three exit options for borrowers involved in deed-in-lieu of foreclosure procedures. The first is the standard mortgage release or immediate move process.
The guidelines escalate in terms of borrower flexibility with the initiative also offering a three-month transition option with no rent payment required and a 12-month lease with market rent payment option.
Further, Fannie Mae said servicers are no longer required to obtain written approval when they want to postpone a foreclosure sale on a loan that is more than 12 months delinquent as of the last paid installment date.