F-1-16, Processing a Repayment Plan (05/10/2017)
Introduction
This Servicing Guide Procedure contains the following:
- Requesting an Extension of a Repayment Plan
- Preparing a Written Agreement or Evaluation Notice for a Repayment Plan
Requesting an Extension of a Repayment Plan
The servicer must obtain Fannie Mae’s prior written approval for an extension of a repayment plan or a repayment plan greater than 12 months in accordance with Repayment Plan Terms in .
The servicer must send its recommendation along with the items listed in the following table to its Fannie Mae Servicing Representative (see ).
| ✓ | The servicer’s request regarding a repayment plan must include… |
|---|---|
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A copy of the repayment plan. |
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A complete BRP. |
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Evidence of the mortgage insurer’s or guarantor’s approval of the proposed repayment plan, if applicable. |
Preparing a Written Agreement or Evaluation Notice for a Repayment Plan
The servicer must prepare a written agreement or Evaluation Notice in accordance with Repayment Plan Terms in .
Subject to compliance with applicable law, the written agreement or Evaluation Notice must comply with the requirements shown in the following table.
| ✓ | The written agreement or Evaluation Notice must include... |
|---|---|
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The terms of the agreement, including, as applicable:
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A provision that permits the servicer to initiate or resume foreclosure if the terms of the agreement are not satisfied by the borrower. |
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For any second lien mortgage loan, a provision for automatic termination of the relief plan when the first lien mortgage loan goes into foreclosure. |
In the case of a written agreement or Evaluation Notice that is not signed by the borrower, unless prohibited by law, the servicer must include appropriate language to provide that, by making a payment under or acting in accordance with the terms of the agreement, the borrower is further confirming the borrower’s agreement to the terms specified in the written agreement or Evaluation Notice.
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