Fannie Mae® Transactions

The outline below highlights what is different on transactions when Fannie Mae is the seller.

  • Buyer(s) names on the contract must match the new incoming deed
    Fannie Mae will not authorize adding or removing anyone from the contract by amendment. To add or remove anyone from the contract, a new contract must be reapproved by Fannie Mae and signed around. Make sure the buyer and lender are consistent as to how they will vest in title and confirm it matches the contract. Escrow is not authorized to move forward with closing until the listing agent has received new approval from the Fannie Mae asset manager and the Fannie Mae system reflects the updates.
  • Reviewing the title report
    Make certain Fannie Mae is showing as the vested owner in the Title Report – this is critical. Escrow is not authorized to close until Fannie Mae is showing as the legal vested owner. This process is handled by the trustee assigned by Fannie Mae and can take an undetermined amount of time.
  • Delinquent HOA/taxes and liens
    Per their contract, Fannie Mae will give free and clear title. However, some liens can take a substantial amount of time to clear while Fannie Mae negotiates a payoff. It’s important that lenders review the title report and determine if they are able to move forward to documents. Escrow has seen many locks expire when liens are still being cleared up. Your escrow officer will be happy to update you on the status of the title report.
  • Assessments
    Assessments will only be paid current.
  • Utilities
    Liens on title or charges over $1,000.00 are addressed by escrow.
    Liens on title or charges under $1,000.00 are addressed by the listing agent.
    Important: Escrow will obtain a payoff for the lien on title and submit for payment. Current and additional charges will be addressed by the listing agent.
  • Rekey fee
    Section 23 of the Fannie Mae contract calls for the property to be rekeyed at the buyers’ expense. This is set up by the listing agent. Fannie Mae will not approve the HUD for closing if escrow doesn’t estimate for this fee.
  • Document delivery
    If documents are received within the five day window of the closing date, it’s up to the agent(s) to make sure the closing date is secure.
  • Seller credit:
    Fannie Mae does not allow the seller credit to go towards taxes, perorations or the rekey fee unless otherwise stated in Section 38 of the Fannie Mae Real Estate Addendum.

It’s very important that you consider this timeline when scheduling your funding date.

Fannie Mae contracts require documents to be delivered to escrow five business days prior to closing.

If you require a pre-HUD, your request should be delivered a minimum two days before your documents are delivered. Documents received after 12:00 p.m. PST will be considered next day, per Fannie Mae.

If documents are received within the five day window of the closing date, it’s up to the agent(s) to make sure the closing date is secure. Fannie Mae has stressed they will not do same day approvals or rush requests.

Document prep and approval:

  • Document prep time 24-72 hours
  • Fannie Mae title team approval turn time is 72 hours
    Note: This approval is required if we’re paying off delinquent taxes, delinquent/outstanding HOA dues/fees or liens shown on title.
  • Fannie Mae review/HUD approval turn time is 48 hours
    Important: Escrow is not authorized to submit for HUD approval until Fannie Mae title team has issued approval, if applicable. If Fannie Mae or the lender require changes to the HUD-1 Settlement Statement that affect net proceeds amounts to Fannie Mae, the approval period time may start over, depending on Fannie Mae volumes.

Document signing:

  • Stewart Title has power of attorney to sign closing documents on behalf of Fannie Mae.
    We do not have to wait for Fannie Mae title team or HUD approval to book the buyer's signing appointment.
  • Buyer(s) names on the incoming deed must match the contract exactly. A new contract is required to add or remove a buyer.
Closing date:
  • Escrow is not authorized to record until we have Fannie Mae HUD approval(s) and all funds to close are in our trust account. Fannie Mae approval(s) can arrive moments before recording cutoff times and after. It’s important that you make the judgment call if you’re going to wire your funds prior to Fannie Mae HUD approval(s) are in.
    Note: Fannie Mae requires all funds to close to be wired. Wiring instructions are mailed to the buyer and will be presented again at the closing. Failure to wire funds to close may delay the closing up to 10 business days.

Important: Files with Fannie Mae approval(s) are not authorized to be released to record by Fannie Mae if funds are not in our trust account.

Seller credit:
Fannie Mae does not allow the seller credit to go towards taxes, perorations or the rekey fee unless otherwise stated in Section 38 of the Fannie Mae Real Estate Addendum.

If you have questions, please call (206) 770-8700.

Stewart Title Company – Tumwater

300 Deschutes Way SW
Suite 300
Tumwater, WA 98501
(360) 357-8877 (main)
(866) 631-6975 (fax)