FHA Loss Sharing Termination
Job-aid
-
toggle
Drawer AM Job Aids
- Achievement and Other Collateral Agreements: Extensions
- Achievement and Other Collateral Agreements: Release or Reduction
- Casualty Losses
- Commercial Lease Requests
- Completion/Repair and Security Agreement Extension Requests
- Condemnation Requests
- Condominium Conversion Requests
- Easement Requests
- FHA Loss Sharing Termination
- Guaranty Agreement Extension
- Guaranty Agreement Releases
- Partial Collateral Releases
- Property Renovation/Conversion Request
- Property Zoning/Transfer of Development Rights
- Subordinate Financing
- Other Requests
If you service mortgage loans that were delivered to Fannie Mae under an FHA Loss Sharing Agreement, you may be able to apply for termination of the loss sharing arrangement under certain conditions. See the Modified Risk Supplement to the DUS Master Loss Sharing Agreement for details.
The Supplement will specify the time period during which you may request termination, generally during the sixth through eighth calendar years following our purchase of the mortgage loan. Keep in mind that because you would no longer be retaining the risk of loss, you would no longer be able to retain a share of the guaranty fee and your servicing fee would decrease per the terms of the Supplement.
The table below lists the key points to consider in preparing a request for FHA loss sharing termination.
Guide Reference |
Not applicable |
Delegation Criteria |
Fannie Mae must approve all requests to terminate FHA loss sharing. |
What to Submit |
Submit the following to Fannie Mae with your request:
|
How to Submit |
Generally: [email protected]. Hard Copy (if required by Fannie Mae) |
Fees |
Not applicable |
Use of Funds |
Not applicable |
Resolution/Follow-up |
If we approve the request, you and Fannie Mae will follow the terms and conditions provided in the Risk Sharing agreement. If we determine that all of the conditions have not been satisfied at the time of the review, then the Modified Risk Loan remains a mortgage loan under DUS and you would continue to have the same obligations under your DUS Master Loss Sharing Agreement. |
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.