Guaranty Agreement Releases

A borrower/principal may request the release of a guaranty agreement placed as additional security for a mortgage loan by a principal to the transaction. As the servicer, you must monitor earn out and expiration dates for guaranty agreements.

The table below lists the key points to consider in determining whether to recommend the release of a guaranty agreement.

Guide Reference

Not applicable

Delegation Criteria

If the borrower does not meet the requirements specified in the guaranty agreement, you may decline a request to release the guaranty. You do not need to notify Fannie Mae.

If you determine that the borrower has satisfied the requirements for release specified in the guaranty agreement, you should submit the request to Fannie Mae. You do not have delegated authority to release a guaranty agreement.

What to Submit

Submit the following to Fannie Mae with your request:

  • Copy of the borrower’s request
  • Copy of the guaranty agreement and all amendments
  • Certified rent rolls covering the period specified in the guaranty agreement
  • Audited operating statement(s) covering the period(s) specified in the guaranty agreement
  • Multifamily Property Inspection (Form 4260), if required by the agreement
  • Copies of all other agreements in connection with the release of the guaranty, specified in the agreement
  • Servicer’s narrative
    • Property name and address
    • Fannie Mae loan number
    • Reason for the request
    • Analysis of the operating statement(s) – if the condition covers three or six consecutive months, provide an analysis for each month
    • The original underwriting analysis
    • Analysis of the rent roll – if the condition covers three or six consecutive months, provide an analysis for each month
    • Your recommendation

Be sure to keep a copy of all the documents in your servicing file.

How to Submit

Generally: [email protected].

Structured Facilities*
(Credit Facilities and Bulk Deliveries): [email protected]

Seniors Housing*: [email protected]

Hard Copy (if required by Fannie Mae)
Fannie Mae
Credit Services/Drawer AM
Mailstop 8H-607
3900 Wisconsin Ave. NW
Washington, DC 20016

*Please contact us at these e-mail addresses for requirements specific to these financing types.


Not applicable

Use of Funds

Not applicable


If we approve the request, complete a Custody Document Transmittal (Form 276), available under the Multifamily tab on, to request return of the guaranty agreement. Fannie Mae will return the guaranty agreement to you when we receive the completed form. You would return it to the borrower.

If we deny the request, follow the instructions in the agreement for paying down the mortgage loan, if applicable. Forward your payoff request to the applicable Asset Management mailbox and to Fannie Mae’s Multifamily Operations team at [email protected] for review and approval.

Always consult the loan documents, transaction documents, your servicing agreement, the Multifamily Guide and the relevant forms for complete instructions.

© 2011 Fannie Mae. Trademarks of Fannie Mae.