Fannie Mae announced Nov. 28 three new exit options for borrowers engaged in the deed-in-lieu of foreclosure process. Fannie also renamed the deed-in-lieu of foreclosure process as a “mortgage release,” the term now used throughout the servicing guidebook.

The three options include immediate move (which is the standard mortgage release), a three-month transition with no rent payment required and a 12-month lease with market-rent payment. Guidelines escalate with regard to borrower flexibility.

The guidelines are tied to the servicing alignment program and they mirror policies previously put forth by the Federal Housing Finance Agency for Fannie Mae and Freddie Mac.

Servicers are required to institute the new policies for all loans being considered for mortgage release on or after March 1, 2013.

Also, Fannie Mae said servicers no longer are required to secure written approval when they want to postpone a foreclosure sale on a loan that is more than 12 months behind as of the most recent installment date.

Read the new Mortgage Release document.

Read the Foreclosure Sale Postponement document.