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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Related Announcements
The following table provides references to Announcements that are related to this topic.
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Announcements |
Issue Date |
|---|---|
| Announcement SVC-2020-07 | December 9, 2020 |
| Announcement SVC-2018-04 | June 13, 2018 |
| Announcement SVC-2017-08 | September 13, 2017 |
| Announcement SVC-2017–01 | January 18, 2017 |
| Announcement SVC-2015–07 |
May 20, 2015 |