Servicing Guide

Published November 10, 2020

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If the mortgage loan transfers to a new servicer after the previous servicer has received the full $1,000 in incentive fees under the cumulative incentive fee cap for retention workout options as set

If the mortgage loan transfers to a new servicer after the previous servicer has received the full $1,000 in incentive fees under the cumulative incentive fee cap for retention workout options as set forth in Lender Letter LL-2020-09, Incentive Fees for Retention Workout Options, is the new servicer eligible to receive any incentive fees for completed repayment plans, payment deferrals, or Fannie Mae Flex Modifications?  

No, the transferee servicer is not eligible to receive any incentive fees for these retention workout options if the cumulative incentive fee cap has already been met due to workout options completed by the transferor servicer. Incentive fee eligibility is tied to the mortgage loan, not to the individual servicer.

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

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