Introduction
This exhibit contains Fannie Mae’s Workout Hierarchy.
Fannie Mae’s Workout Hierarchy
The servicer must consider a reinstatement when the mortgage loan is delinquent and the servicer has determined that the borrower has the ability to bring the mortgage loan current.
The servicer must see Chapter D2-3, Fannie Mae’s Home Retention and Liquidation Workout Options for the applicable workout option requirements. The following table provides guidance and the order of evaluation for available workout options for a conventional first lien mortgage loan. A complete BRP may not be required in accordance with the workout options described in Chapter D2-3, Fannie Mae's Home Retention and Liquidation Workout Options.
| Temporary Hardship | |
|---|---|
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The following table describes the servicer’s requirements if the borrower is experiencing or has experienced a temporary hardship resulting from a short-term decrease in income or increase in expenses. |
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If the hardship has... |
Then the servicer must consider a... |
| not been resolved | |
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been resolved and the borrower does not have the ability to reinstate the mortgage loan |
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| been resolved and the borrower does not have the ability to afford a repayment plan | |
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Permanent Hardship |
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If the borrower is experiencing a hardship that has resulted in a permanent or long-term decrease in income or increase in expenses, the servicer must evaluate the borrower for a workout option in the following order: |
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