Servicing Guide

Published November 10, 2020

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F-1-23: Reporting a Workout Option via Fannie Mae’s Servicing Solutions System (09/09/2020)

This Servicing Guide Procedure contains the following:


Reporting a Combination of a Forbearance Plan and Repayment Plan to Fannie Mae

The servicer must evaluate a borrower for a workout option in accordance with D2-3.1-01, Determining the Appropriate Workout Option.

When the servicer structures a combination of workout options in an agreement that includes forbearance and a repayment plan, it must report the workout option to Fannie Mae as follows:

  • use a forbearance plan code during the forbearance period (when monthly payments are reduced or suspended), and

  • use a repayment plan code during the repayment period (when regular monthly payments have resumed and additional payments are scheduled to be made to cure the delinquency).


Reporting a Disaster Payment Deferral to Fannie Mae

The servicer must evaluate a borrower for a disaster payment deferral in accordance with D2-3.2-06, Disaster Payment Deferral.

The servicer must submit an eligible disaster payment deferral case to Fannie Mae’s servicing solutions system by entering loan-level information, including the applicable campaign ID to identify a disaster payment deferral. The case must be entered by the last day of the month in which the evaluation took place.

If the servicer chooses to use a processing month, the servicer must enter the disaster payment deferral case within the processing month, but no later than the last day of the processing month. If a full monthly contractual payment is required in the processing month because the mortgage loan is 12 months delinquent as of the date of the evaluation, then the servicer must remit and report via a Loan Activity Record (LAR) to Fannie Mae the borrower’s full monthly contractual payment due in the processing month prior to completing the disaster payment deferral in Fannie Mae’s servicing solutions system.

Note:If the servicer does not remit and report via a LAR the full monthly contractual payment at least one business day prior to the last day of the month, the servicer will not be able to complete the disaster payment deferral case. If the UPB or LPI reported in Fannie Mae’s servicing solutions system prior to application of a disaster payment deferral does not agree with the last reported UPB or LPI in Fannie Mae’s investor reporting system, the disaster payment deferral will not be processed in Fannie Mae’s investor reporting system until the discrepancy is resolved.

See the Investor Reporting Manual for additional information.


Reporting a Mortgage Loan Modification to Fannie Mae

The servicer must evaluate a borrower for Fannie Mae’s mortgage loan modification options in accordance with Fannie Mae’s Servicing Guide.

The following table outlines the required servicer actions to report a Fannie Mae mortgage loan modification to Fannie Mae.

Step Servicer Action
1

Submit a case into Fannie Mae’s servicing solutions system by entering loan-level information, including:

  • a property valuation, and

  • the applicable campaign ID to identify the mortgage loan modification program under which the case is being submitted.

2

Report loan-level data in Fannie Mae’s servicing solutions system upon receipt of the borrower’s first Trial Period Plan payment and all subsequent Trial Period Plan payments under the Trial Period Plan.

If the borrower makes all required Trial Period Plan payments, continue to step 3. If not, cancel the case in Fannie Mae’s servicing solutions system and do not continue to step 3.

3

After application of all Trial Period Plan payments made by the borrower, the servicer must represent and warrant in Fannie Mae’s servicing solutions system that once the sum of payments totals a full contractual payment on the underlying mortgage loan, the borrower has been in a delinquent status (that is, not current in contractual payments) on each of the last four monthly payment due dates and continues to be delinquent.

4

After Fannie Mae’s prior written approval is obtained, if required, and the MBS mortgage loan is reclassified, if applicable, the servicer will update the Officer Signature Date in Fannie Mae’s servicing solutions system to close the mortgage loan modification.

Note: If the pre-modification UPB or the pre-modification LPI reported in Fannie Mae’s servicing solutions system for the closed mortgage loan modification does not agree with the pre-modification UPB or LPI in Fannie Mae’s investor reporting system, the mortgage loan modification will not be processed in Fannie Mae’s investor reporting system until the discrepancy is resolved.


Reporting a Government Mortgage Loan Modification to Fannie Mae

For a government mortgage loan, the servicer must evaluate a borrower for and complete a mortgage loan modification in accordance with D2-3.2-03, Government Mortgage Loan Modifications.

The following table outlines the requirements to report a government mortgage loan modification to Fannie Mae.

Step Servicer Action
1

Obtain a signed mortgage loan modification agreement from the borrower(s) and any co-makers or endorsers of the note.

2

Have its authorized representative sign the completed mortgage loan modification agreement to indicate the servicer’s approval of the mortgage loan modification or extension.

3

Submit the information pertaining to the mortgage loan modification as a case in Fannie Mae’s servicing solutions system, and upload the executed mortgage loan modification agreement.

Note: If Fannie Mae notifies the servicer of any discrepancies between the information entered into Fannie Mae’s servicing solutions system and Fannie Mae’s investor reporting system, continue with steps 4 and 5.

4

Work with Fannie Mae to identify the proper corrective action required to resolve the issue(s).

If the servicer determines that… Then the servicer must...

the data entered into Fannie Mae’s servicing solutions system was incorrect

  • cancel the case in Fannie Mae’s servicing solutions system,

  • correct the data, and

  • resubmit a case via Fannie Mae’s servicing solutions system.

the data reported through the LAR was inaccurate

submit a corrected LAR.

5

Notify Fannie Mae when it has completed the appropriate corrective action.

Note: Fannie Mae will then resolve the error in its investor reporting system. The servicer can confirm that the investor reporting system accurately applied the modified terms after the error is resolved.


Reporting a Mortgage Release to Fannie Mae

The servicer must evaluate a borrower and execute a Mortgage Release in accordance with D2-3.3-02, Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure).

The following table outlines the required servicer actions to report a Fannie Mae Mortgage Release to Fannie Mae.

Step Servicer Action
1

Once the servicer has received all required documentation, including the final interior property inspection report, if applicable, it must report its final acceptance of the Mortgage Release to Fannie Mae through Fannie Mae’s servicing solutions system.

Note: Regardless of the transition option, the servicer must submit the case to Fannie Mae through Fannie Mae’s servicing solutions system to report its final acceptance of the Mortgage Release.

2

Submit the REOgram, including any applicable lien release documents and contact information for the HOA, to Fannie Mae’s SF CPM division (see F-4-03, List of Contacts) within 24 hours of the date the servicer completes its final acceptance of the executed Mortgage Release. The servicer must report the Fannie Mae’s servicing solutions system closing date as the foreclosure sale date on the REOgram. See Contents of the REOgram in E-4.1-01, Notifying Fannie Mae of an Acquired Property, for the contents of the REOgram.

Note: Also see A1-4.2-01, Compensatory Fees Other Than Delays in the Liquidation Process, for additional information on applicable compensatory fees.

Note: The servicer must submit the case into Fannie Mae’s servicing solutions system, regardless of the transition option chosen, to complete its final acceptance of the Mortgage Release.

Also, the servicer must see the Investor Reporting Manual for detailed requirements on how to report to Fannie Mae’s investor reporting system.

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