Servicing Guide

Published September 9, 2020

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Is there a delinquency status code hierarchy and are there definitions available?

Each of the delinquency status codes in the following tables can be applied to a given mortgage loan at any point in the delinquency process. The codes are not always mutually exclusive; however, the servicer must report only one code (that may change from month to month) based on Fannie Mae’s delinquency status code hierarchy for each delinquent mortgage loan in each reporting cycle.

When multiple delinquency status codes are applicable to an individual loan, the servicer must use the appropriate delinquency status code in the highest priority. Priority Level 1, Priority Level 2, and Priority Level 3 delinquency status codes are mutually exclusive, meaning only one delinquency status code within each priority level can apply during a reporting cycle. If the most appropriate delinquency status code is in a priority level in which the codes are not mutually exclusive, the servicer must determine the delinquency status code that best describes the latest action it has taken to cure the delinquency or to liquidate the mortgage loan. 

The servicer must continue to report the appropriate delinquency status code based on the hierarchy and the effective date of the action taken until the delinquency has been resolved or the delinquency status action is complete. 

Note: If the description does not provide a definition of the effective date, then the servicer must report the date the action was taken. 

Note: In circumstances where the servicer chooses to use a processing month to complete a disaster payment deferral, then for the processing month it must report the same delinquency status code used when reporting the previous month’s delinquency status information (i.e., delinquency status code 09 – Forbearance or 42 – Delinquent, No Action).

Priority Level 1
Codes for Approved Workout Options
Code Name Definition
BF Trial Modification

The borrower has been approved to participate in a mortgage loan modification that requires a Trial Period Plan, even if the borrower files bankruptcy. This code should remain until all scheduled Trial Period Plan payments have been received and the delinquency status code is changed to reflect the most appropriate status.

  • The Effective Date is the first day of the month in which the first Trial Period Plan payment is due.

  • The Completion Date is the last day of the month in which the Trial Period Plan has ended.

09 Forbearance

The servicer has authorized a temporary suspension of payments or has agreed to accept payments less than the borrower’s scheduled monthly payment for a specified period of time. This includes a mortgage loan that has received forbearance under an HFA program.

Note: When a mortgage loan is canceled from a forbearance payment plan because the borrower is proceeding with the HHF program, the servicer must continue to report the Delinquency Status Code 09 (Forbearance), to reflect the mortgage loan’s delinquent status.

17 Short Sale Approved/Offer Received

A contract or offer has been received for a short sale and Fannie Mae has approved the offer.

  • The Effective Date is the date on which the contract or offer is received.

  • The Completion Date is the anticipated closing date.

12 Repayment Plan

The servicer has an agreement with the borrower for the acceptance of regularly scheduled monthly payments plus an additional amount over a prescribed number of months to bring the mortgage loan current.

  • The Effective Date is the first scheduled monthly or biweekly payment due under the repayment plan.

  • The Completion Date is the last scheduled payment date.

27 Assumption

An assumption of the mortgage loan debt has been assumed by a third-party. In this scenario, a Trial Period Plan or mortgage loan modification has not been offered to the new borrower.

Note: If an assumption is completed with a modification, the servicer must report either the Trial Period Plan or Modification code.

28 Modification

The borrower has successfully completed all scheduled mortgage modification Trial Period Plan payments and the Loan Modification Agreement has been sent to the borrower. This code should remain until the loan has been converted to a permanent modification.

29 Charge-off

Fannie Mae has agreed that it is not in its best interests to pursue collection efforts or legal actions against the borrower because of a reduced value for the property, a low outstanding mortgage loan balance, or the presence of certain environmental hazards on the property.

32 Military Indulgence

The servicer has granted a delinquent servicemember a stay of foreclosure proceedings under a military indulgence or any similar applicable law.

44 Mortgage Release

Fannie Mae authorized the servicer to accept a voluntary conveyance of the property instead of acquiring the property through foreclosure proceedings.

Priority Level 2
Complete Borrower Response Package
Code Name Definition
H5 Complete BRP

The completed BRP has been received. This code must only be reported in the month the complete BRP is received. If an approved workout option (Level 1) was established in the same reporting cycle in which the complete BRP was received, the servicer must report the appropriate workout delinquency status code.

  • The Effective Date is the date that the completed workout package is received.

Priority Level 3
Bankruptcy–related Codes
Code Name Definition
3L Bankruptcy Chapter 7 – Asset Case

Notification to Fannie Mae that the Chapter 7 bankruptcy will remain in effect longer than normal due to trustee-found assets.

3M Bankruptcy – Property Surrendered

The property has been surrendered as part of the bankruptcy.

59 Chapter 12 Bankruptcy

The borrower has filed for bankruptcy under Chapter 12 of the U.S. Bankruptcy Code.

65 Chapter 7 Bankruptcy

The borrower has filed for bankruptcy under Chapter 7 of the U.S. Bankruptcy Code.

Note: If the Chapter 7 is an Asset Case, the servicer must report the delinquency status code – 3L.

66 Chapter 11 Bankruptcy

The borrower has filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.

67 Chapter 13 Bankruptcy

The borrower has filed for bankruptcy under Chapter 13 of the U.S. Bankruptcy Code. The Chapter 13 has not been confirmed by the bankruptcy court.

69 Chapter 13 Bankruptcy Plan – Post-Petition Period Utilize

The Chapter 13 plan has been confirmed by the bankruptcy court.

  • The Effective Date is the first month after the month in which the plan is confirmed.

Priority Level 4
Foreclosure-related Codes
Code Name Definition
20 Reinstatement

The servicer has accepted funds from a borrower on a mortgage loan that is in foreclosure to be applied to the loan to partially reinstate the mortgage loan.

24 Drug Seizure

The DOJ (or any other state or federal agency) has decided to seize (or has seized) a property under the forfeiture provision of the Controlled Substances Act.

30 Third-Party Sale

A successful third-party bidder was awarded the property at the foreclosure sale.

31 Probate

The servicer cannot pursue (or complete) foreclosure action because proceedings relating to a deceased borrower's estate are in process. This code must be reported until probate is resolved.

33 Contested or Litigated Foreclosure

The file is in a contested or litigated foreclosure status and is pending resolution.

  • The Effective Date is the date on which the answer to the complaint was filed or litigation was engaged.

43 Foreclosure

The servicer has referred the case to an attorney (or trustee) to take legal action to acquire the property through a foreclosure sale.

61 Second Lien Considerations

Applies to a second lien mortgage loan to indicate that the servicer is evaluating the advantages and disadvantages of pursuing a foreclosure action or recommending that the debt be charged off.

63 Veterans Affairs—Refund

The Department of Veterans Affairs has requested information about a VA-guaranteed mortgage loan the servicer referred for foreclosure in order to reach a decision about whether to accept an assignment for purposes of refunding the mortgage loan to avoid foreclosure.

71 Foreclosure Sale Scheduled

The foreclosure sale is scheduled.

  • The Effective Date is the date on which the foreclosure sale is initially scheduled to occur.

94 Judgment or Decree Entered

The mortgage loan is in foreclosure and the judgment or decree has been entered. The code should remain until the foreclosure sale is scheduled.

95 Foreclosure Sale Continued

The foreclosure sale was delayed as a result of postponement, attorney delay, or other reason.

BE Title Issue in Progress

The foreclosure proceedings are delayed due to title issues and are pending resolution.

BG Pre-File Mediation/ Mediation

The mortgage loan has been referred to mediation. For loans that have been previously referred to an attorney for foreclosure, this code must not be used until the servicer is notified by the attorney that the loan has been referred to mediation. Once notified of the referral to mediation, this code must then replace the existing status code.

Priority Level 5
Collection-related Codes
Code Name Definition
AW Quality Right Party Contact

QRPC has been established but the servicer has not identified a specific solution for resolving the borrower’s delinquency. This code must only be reported for one month.

  • The Effective Date is the date that the QRPC was established.

15 Short Sale Approved/Marketing Property

The borrower has been approved to participate in a short sale and is actively marketing the property, but an offer has not yet been received or the borrower is making reduced or suspended payments during a short sale marketing period.

  • The Effective Date is the date the borrower has been approved to participate in a short sale.

  • The Completion Date is the anticipated ending date of the property listing.

42 Delinquent, No Action

The mortgage loan is 30+ days delinquent, but the servicer has not taken legal action. The servicer must then report this code until the servicer is able to establish QRPC and determine an appropriate course of action.

80 Breach Letter Sent

The breach or acceleration letter has been sent and the mortgage loan has not yet been referred to an attorney (or trustee) for foreclosure proceedings.

  • The Effective Date is the date on which the breach letter was sent.

Priority Level 6
Other Codes
Code Name Definition
26 Refinance

The servicer is aware that the borrower is pursuing an arrangement whereby the existing first-lien mortgage loan will be refinanced (paid off).

Note: This code must only be reported for one month.

49 Assignment

A mortgage loan is in the process of being assigned to the insurer or guarantor.

For more information please see Servicing Guide F-1-22, Reporting a Delinquent Mortgage Loan via Fannie Mae’s Servicing Solutions System. 

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