This topic contains information on government mortgage loan modifications.
Before recommending a mortgage loan modification or extension for a government mortgage loan to Fannie Mae, the servicer must first obtain the approval of the FHA, HUD, VA, or the RD, as applicable, using any documentation the mortgage insurer or guarantor requires.
For an MBS mortgage loan, the servicer must also see Conditions of a First and Second Lien Mortgage Loan Modification for an MBS Mortgage Loan in D2-3.1-02, Working with an MBS Mortgage Loan for Certain Workout Options (06/08/2016).
After the servicer obtains all applicable approvals, it must prepare and fully execute the mortgage loan modification agreement required by the FHA, HUD, VA or the RD or, if none is explicitly required, the Agreement for Modification, Re-Amortization or Extension of a Mortgage (Form 181).
The servicer must follow the procedures in Executing and Recording the Mortgage Loan Modification Agreement in F-1-18, Processing a Government Mortgage Loan Modification (07/08/2015) for executing and, if applicable, recording the mortgage loan modification agreement.
For a completed FHA mortgage loan modification, the servicer must provide all documents to FHA in the time frame that it requires. In the event FHA issues a request for repayment of the incentive payment or partial claim, the servicer must repay the funds.
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D2-3.2-05: Government Mortgage Loan Modifications (08/17/2016)
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