Servicing Guide

Published September 9, 2020

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Can a mortgage loan modification be implemented on an MBS mortgage loan if the required Trial Period Plan payments have not been made?

The servicer must ensure that the mortgage loan modification is not implemented if the required Trial Period Plan payments are not made in accordance with the applicable mortgage loan modification workout option, since the preconditions to make the mortgage loan modification effective have not been satisfied. The servicer must ensure that a mortgage loan modification does not become effective while it remains in an MBS pool.

For more information please see: D2-3.1-02:Conditions of a First and Second Lien Mortgage Loan Modification for an MBS Mortgage Loan

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