Fannie Mae will not purchase or securitize a mortgage secured by property that has an unacceptable title impediment, particularly unpaid real estate taxes and survey exceptions.
If surveys are not commonly required in particular jurisdictions, the lender must provide an ALTA 9 Endorsement. If it is not customary in a particular area to supply either the survey or an endorsement, the title policy must not have a survey exception. However, if the lender substantiates that a first mortgage title policy was issued without a survey exception, Fannie Mae will purchase or securitize a second mortgage secured by the same property even though it has a survey exception.
For additional information, see B7-2-05, Title Exceptions and Impediments.