F-2-11: Fannie Mae’s Workout Hierarchy (06/13/2018)
© Fannie Mae Single Family Servicing Guide
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 | |
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. | |
If the hardship has... | Then the servicer must consider a... |
been resolved and the borrower does not have the ability to reinstate the mortgage loan | · D2-3.2-04, Repayment Plan (05/10/2017) |
not been resolved | · D2-3.2-01, Forbearance Plan (09/18/2018) |
Permanent Hardship | |
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: · D2-3.2-09, Fannie Mae Flex Modification (09/18/2018) · D2-3.3-01, Fannie Mae Short Sale (11/14/2018) · D2-3.3-02, Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure) (11/14/2018) Note: If a borrower requests to be evaluated for a liquidation workout option, the servicer must first evaluate the borrower for a liquidation workout option. D2-3.1-01, Determining the Appropriate Workout Option (11/12/2014) |