the beneficiary treats the bonds as “bailee” (or trustee) for the third party until the third party receives the proceeds (cash or securities) or recovers the mortgage bonds that have not been purchased or securitized. When providing a mortgage that has been mortgaged as collateral for a line of credit, the lender must meet the following requirements: the bonds are owned or securitised in the name of a third party (e.g.B. mortgages that are subject to a sale and redemption agreement); or when the surety takes possession of land, he assumes a legal and fiduciary responsibility for its conservation. As noted above, the Bailee is expected to exercise due diligence with respect to the property, even if there are no fees. The subcontractor must therefore return the goods to the sub-bond as they were entrusted. The surety may bring an action for damages if he is able to prove that the surety did not exercise due diligence during the bond. This relationship, which is legally called bailout, is based on a contractual agreement between the Bailor and the Bailee. The surety sets the conditions and purpose of the modification of the detention and is described in writing as a receipt or a chit. The requirements for processing letters of guarantee and other communications regarding third party interests in mortgages differ depending on whether the loans are certified by a document custodian operating under a Master Custodial Agreement (Form 2003), a Master Custodian Custodial Agreement (Form 2010) or a Master Custodial Agreement (Form 2017). For more information, see Fannie Mae`s DRC guide.
Fannie Mae is not responsible for any losses incurred by a mortgage seller or other party as a result of Fannie Mae`s acts or omissions in connection with these proceedings, including Fannie Mae`s (or not) performance of certain milestones and delays resulting therefrom. As stated above, the Bailee obtains custody of a piece of land, but cannot legally claim ownership of it. . . .