D2-2-07, Resolving an Appeal of a Mortgage Loan Modification Trial Period Plan Denial for a Principal Residence (05/10/2017)

For information on identifying an appeal of the denial of a mortgage loan modification Trial Period Plan, see Establishing Written Policies or Procedures in A4-1-01, Staffing, Training, Procedures, and Quality Control RequirementsA4-1-01, Staffing, Training, Procedures, and Quality Control Requirements. The servicer must confirm that an appeal in connection with a complete BRP that satisfies these requirements is a written request for an appeal that includes the following:

• borrower’s name,

• property address, and

• mortgage loan number.

In order for the borrower to be eligible for an appeal of a denial of a mortgage loan modification Trial Period Plan, the following conditions must be met:

• the mortgage loan must be secured by a principal residence, and

• the borrower must have submitted a complete BRP 90 days or more before a scheduled foreclosure sale date, or the foreclosure sale date is unknown.

The appeal requirements do not apply if the borrower previously submitted a complete BRP and the mortgage loan has been delinquent at all times since submitting the prior complete BRP, as authorized by applicable law.

The servicer must inform the borrower that they may submit any supporting documentation and specific appeal reason at the time the servicer is notified of the appeal.

The servicer must provide written notice of the appeal decision within 30 days of receipt of the borrower’s appeal. The following table describes the servicer’s requirements for handling an appeal depending upon when the appeal is received.

The servicer must not require that the borrower accept any initial offer for a workout option prior to resolution of the appeal.

The following table describes the servicer’s requirements after review of an appeal if the servicer determines that the borrower was eligible for a mortgage loan modification Trial Period Plan for which the borrower was previously denied.

If the borrower waits to accept the initial offer until after receiving the appeal decision, the servicer must take the actions in the following table.

The servicer must adjust the payment amount in instances where additional amounts have accrued and/or the due dates of the initial offer have changed because the borrower was awaiting the outcome of the appeal decision by taking the actions in the following table.

If the borrower waits to accept the initial offer until after receiving the appeal decision, the first payment due date of any resulting mortgage loan modification Trial Period Plan offer, and the revised first payment due date for the initial offer, as applicable, is based on when the appeals decision is sent by the servicer to the borrower, as described in the following table.

The servicer’s appeal decision is final and not subject to further appeal. The servicer must make information related to the appeals process available to Fannie Mae upon request.