If a borrower who is making payments under a Trial Period Plan converts to a forbearance plan due to a COVID related hardship, will they still be eligible to receive a Fannie Mae Flex Modification onc

If a borrower who is making payments under a Trial Period Plan converts to a forbearance plan due to a COVID related hardship, will they still be eligible to receive a Fannie Mae Flex Modification once the forbearance plan is complete and their hardship is resolved? 

Generally, eligibility requirements for Fannie Mae’s Flex Modification prevent servicers from offering a Flex Modification to any borrower who has failed a Trial Period Plan within the prior 12 months. However, converting a borrower from a Trial Period Plan to a forbearance plan is not considered a failed Trial Period Plan per Servicing Guide D2-3.2-08, Fannie Mae Flex Modification. Further, a failed Trial Period Plan will not prevent a borrower from receiving a COVID-19 payment deferral.

Note: This FAQ is from the Fannie Mae COVID-19 Frequently Asked Questions.

See below for more information on COVID-19:

• Fannie Mae’s COVID-19 page
• The Impact of COVID-19 on Servicing
• Fannie Mae Servicing Lender Letter LL 2020 02