Servicing Guide

Published October 14, 2020

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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 D2-3.2-06, Fannie Mae Flex Modification. Further, a failed Trial Period Plan will not prevent a borrower from receiving a COVID-19 payment deferral.

 

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

See below for more information on COVID-19:

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