D2-2-05, Receiving a Borrower Response Package (06/09/2021)

Unless a borrower or co-borrower is deceased or divorced, all parties whose income was used to qualify for the original mortgage loan and who signed the mortgage loan note must submit the items required for a complete BRP. The following table lists the documentation that the servicer must obtain for a BRP to be complete, as required in Mortgage Assistance Application (Form 710).

The servicer is authorized to

• permit the borrower to complete, sign, and fax or email the documents required for a complete BRP to the servicer in accordance with applicable law; 

• provide a secure means of access through which a borrower may prepare and electronically deliver the documents required for a complete BRP to the servicer; or

• use a third-party verification vendor to verify income and asset information the borrower provided in the Form 710 as long as the servicer

  • complies with the requirements in this Guide, including but not limited to, the policies outlined in

    • Overview of General Servicer Duties and Responsibilities in A2-1-01, General Servicer Duties and Responsibilities; and

    • Establishing Written Policies or Procedures and Quality Control Requirements in A4-1-01, Staffing, Training, Procedures, and Quality Control Requirements;

  • understands it will be held accountable for the security, accuracy, and integrity of the information obtained from the third-party verification vendor;
  • obtains legal authorization from the borrower to use this verification method; and
  • retains all verification reports received from the third-party verification vendor in the loan file.

Note: The servicer must supplement the verification report by obtaining any missing information, or any information necessary to address inconsistencies, from the borrower.

See Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions for additional information.

If the servicer determines that any special documentation is required to support information provided by the borrower, it must contact its Fannie Mae Servicing Representative (see F-4-02, List of ContactsF-4-02, List of Contacts).

A BRP is not considered complete if the borrower submits Form 710, or equivalent, that is

• only partially completed,

• not accompanied by all required income and hardship documentation, or

• not accompanied by an executed IRS IVES Form 4506-C under the circumstances described in this section above.

When a borrower is in an active Chapter 7 or Chapter 13 bankruptcy, the servicer is authorized to

• accept a copy of the bankruptcy schedule(s) in lieu of Form 710, provided that the schedule(s) is not more than 90 days old on the date the servicer receives the schedule(s);

• accept tax returns, if returns are required to be filed; and

• use this information, along with any required income and hardship documentation as specified in Form 710, to determine borrower eligibility for workout options.

Within five business days, the servicer must acknowledge its receipt of a BRP to the borrower in writing, and must indicate whether the BRP is complete or incomplete. The acknowledgment must include the items listed in the following table.

In addition, for borrowers who submit a complete BRP 37 days or less prior to a scheduled foreclosure sale, the servicer must submit an explanation of the servicer’s plans for evaluating the borrower for a workout option and suspending the foreclosure sale, if appropriate.

The servicer must send an Incomplete Information Notice including the items listed in the following table to the borrower no later than 5 business days from receipt of documentation from the borrower if the servicer determines that documentation is missing.

If the BRP is incomplete, the servicer is authorized to combine the Incomplete Information Notice with the acknowledgment of its receipt of the BRP.

The servicer is authorized, but not required, to send an Incomplete Information Notice to a borrower who submits incomplete documentation 37 days or less prior to a scheduled foreclosure sale. The servicer is strongly encouraged to work with borrowers who submit incomplete documentation 37 days or less prior to a scheduled foreclosure sale to obtain a complete BRP and expedite a decision.

The servicer must continue to attempt to obtain missing documentation using outbound contact methods as described in  D2-2-02, Outbound Contact Attempt RequirementsD2-2-02, Outbound Contact Attempt Requirements.

The servicer must review and evaluate a complete BRP and communicate a decision to the borrower by sending an Evaluation Notice, or equivalent, within five days after making the decision, but no later than 30 days following the receipt of a complete BRP. See E-3.4-01, Suspending Foreclosure Proceedings for Workout NegotiationsE-3.4-01, Suspending Foreclosure Proceedings for Workout Negotiations for evaluation requirements during foreclosure proceedings.

While use of an Evaluation Notice is optional, it reflects a minimum level of information that the servicer must communicate and illustrates a level of specificity that complies with the requirements of this Guide. The following table provides the requirements for the Evaluation Notice.

An acceptance by the borrower of a workout option may be in the form of verbal or written communication, or receipt of a payment, if applicable. The type of acceptance may vary based on the status of the foreclosure action of the mortgage loan.

If a mortgage loan has been referred to foreclosure prior to receipt of a complete BRP and a complete BRP is subsequently received, see  E-3.4-01, Suspending Foreclosure Proceedings for Workout NegotiationsE-3.4-01, Suspending Foreclosure Proceedings for Workout Negotiations for the requirements for reviewing and evaluating a BRP.