The servicer must evaluate a mortgage loan for workout options in accordance with D2-3.1-01, Determining the Appropriate Workout Option.
When a repayment plan is considered to be the appropriate workout option, Fannie Mae will review eligibility for the repayment plan incentive fee and make the final determination based on information provided by the servicer; therefore, the servicer is not required to submit requests for payment of repayment plan incentive fees. Repayment plan incentive fees on eligible mortgage loans will be sent to the servicer on a monthly basis.
After a repayment plan is established, the following criteria must be satisfied:
- the servicer must report the repayment plan using Fannie Mae’s servicing solutions system by the second business day of the month following the month the plan was entered into with the borrower; and
- the servicer must continue to report each month that the borrower is on a repayment plan until the mortgage loan becomes current, the borrower defaults on the terms of the repayment plan, or the mortgage loan is liquidated.
For more information please see F-1-19, Processing a Workout Incentive Fee