F-1-21, Reporting a Delinquent Mortgage Loan via Fannie Mae’s Servicing Solutions System (10/11/2023)

none of delinquency status information has changed

must re-transmit the same delinquency status information that it previously reported for the mortgage loan.

the delinquency status information has changed

must report the new delinquency status information.

Note: The servicer must report the delinquency status code; the effective date and completion date of the delinquency status being reported, if applicable; and the “reason for delinquency” code even if only one of them has changed.

a delinquency status code no longer applies because the mortgage loan has been reinstated (and the servicer reported a current LPI date through Fannie Mae’s investor reporting system)

will no longer need to report delinquency status information to Fannie Mae for that mortgage loan.

a delinquency status code no longer applies because the mortgage loan has been liquidated (and the servicer reported a liquidation action code through Fannie Mae’s investor reporting system)

Determine the appropriate corrections to resolve each exception.

By the 10th calendar day of the month in which the exception report was issued, make corrections through Fannie Mae’s servicing solutions system.

On the 11th calendar day of the month, receive from Fannie Mae

• an updated final exception report, and

• a summary of what was reported during the month.

Use the final exception reports to reconcile the information on its systems.

Indicates what type of forbearance plan the borrower is on:

• 0 = Forbearance

Indicates the loan has been placed in forbearance because the borrower has been determined to be in imminent default.

• 1 = YES or

• 0 = NO or Space (Empty)

The forbearance program payment amount is the amount agreed to, not the actual amount received.

If the value is short of length, prefix with zeros and suffix with zeros after the decimal.

Enter 4 spaces.

The borrower has been approved to participate in a mortgage loan modification that requires a Trial Period Plan, even if the borrower files bankruptcy. This code should remain until all scheduled Trial Period Plan payments have been received and the delinquency status code is changed to reflect the most appropriate status.

• The Effective Date is the first day of the month in which the first Trial Period Plan payment is due.

• The Completion Date is the last day of the month in which the Trial Period Plan has ended.

The servicer has authorized a temporary suspension of payments or has agreed to accept payments less than the borrower’s scheduled monthly payment for a specified period of time. 

A contract or offer has been received for a short sale and Fannie Mae has approved the offer.

• The Effective Date is the date on which the contract or offer is received.

• The Completion Date is the anticipated closing date.

The servicer has an agreement with the borrower for the acceptance of regularly scheduled monthly payments plus an additional amount over a prescribed number of months to bring the mortgage loan current.

• The Effective Date is the first scheduled monthly or biweekly payment due under the repayment plan.

• The Completion Date is the last scheduled payment date.

An assumption of the mortgage loan debt has been assumed by a third-party. In this scenario, a Trial Period Plan or mortgage loan modification has not been offered to the new borrower.

Note: If an assumption is completed with a modification, the servicer must report either the Trial Period Plan or Modification code.

The borrower has successfully completed all scheduled mortgage modification Trial Period Plan payments and the Loan Modification Agreement has been sent to the borrower. This code should remain until the loan has been converted to a permanent modification.

Fannie Mae has agreed that it is not in its best interests to pursue collection efforts or legal actions against the borrower because of a reduced value for the property, a low outstanding mortgage loan balance, or the presence of certain environmental hazards on the property.

The servicer has granted a delinquent servicemember a stay of foreclosure proceedings under a military indulgence or any similar applicable law.

Fannie Mae authorized the servicer to accept a voluntary conveyance of the property instead of acquiring the property through foreclosure proceedings.

The completed BRP has been received. This code must only be reported in the month the complete BRP is received. If an approved workout option (Level 1) was established in the same reporting cycle in which the complete BRP was received, the servicer must report the appropriate workout delinquency status code.

• The Effective Date is the date that the completed workout package is received.

Notification to Fannie Mae that the Chapter 7 bankruptcy will remain in effect longer than normal due to trustee-found assets.

The property has been surrendered as part of the bankruptcy.

The borrower has filed for bankruptcy under Chapter 12 of the U.S. Bankruptcy Code.

The borrower has filed for bankruptcy under Chapter 7 of the U.S. Bankruptcy Code.

Note: If the Chapter 7 is an Asset Case, the servicer must report the delinquency status code – 3L.

The borrower has filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.

The borrower has filed for bankruptcy under Chapter 13 of the U.S. Bankruptcy Code. The Chapter 13 has not been confirmed by the bankruptcy court.

The Chapter 13 plan has been confirmed by the bankruptcy court.

• The Effective Date is the first month after the month in which the plan is confirmed.

The servicer has accepted funds from a borrower on a mortgage loan that is in foreclosure to be applied to the loan to partially reinstate the mortgage loan.

The DOJ (or any other state or federal agency) has decided to seize (or has seized) a property under the forfeiture provision of the Controlled Substances Act.

A successful third-party bidder was awarded the property at the foreclosure sale.

The servicer cannot pursue (or complete) foreclosure action because proceedings relating to a deceased borrower's estate are in process. This code must be reported until probate is resolved.

The file is in a contested or litigated foreclosure status and is pending resolution.

• The Effective Date is the date on which the answer to the complaint was filed or litigation was engaged.

The servicer has referred the case to an attorney (or trustee) to take legal action to acquire the property through a foreclosure sale.

Applies to a second lien mortgage loan to indicate that the servicer is evaluating the advantages and disadvantages of pursuing a foreclosure action or recommending that the debt be charged off.

The Department of Veterans Affairs has requested information about a VA-guaranteed mortgage loan the servicer referred for foreclosure in order to reach a decision about whether to accept an assignment for purposes of refunding the mortgage loan to avoid foreclosure.

The foreclosure sale is scheduled.

• The Effective Date is the date on which the foreclosure sale is initially scheduled to occur.

The mortgage loan is in foreclosure and the judgment or decree has been entered. The code should remain until the foreclosure sale is scheduled.

The foreclosure sale was delayed as a result of postponement, attorney delay, or other reason.

The foreclosure proceedings are delayed due to title issues and are pending resolution.

The mortgage loan has been referred to mediation. For loans that have been previously referred to an attorney for foreclosure, this code must not be used until the servicer is notified by the attorney that the loan has been referred to mediation. Once notified of the referral to mediation, this code must then replace the existing status code.

QRPC has been established but the servicer has not identified a specific solution for resolving the borrower’s delinquency. This code must only be reported for one month.

• The Effective Date is the date that the QRPC was established.

The borrower has been approved to participate in a short sale and is actively marketing the property, but an offer has not yet been received or the borrower is making reduced or suspended payments during a short sale marketing period.

• The Effective Date is the date the borrower has been approved to participate in a short sale.

• The Completion Date is the anticipated ending date of the property listing.

The mortgage loan is 30+ days delinquent, but the servicer has not taken legal action. The servicer must then report this code until the servicer is able to achieve QRPC and determine an appropriate course of action.

The breach or acceleration letter has been sent and the mortgage loan has not yet been referred to an attorney (or trustee) for foreclosure proceedings.

• The Effective Date is the date on which the breach letter was sent.

The servicer is aware that the borrower is pursuing an arrangement whereby the existing first-lien mortgage loan will be refinanced (paid off).

Note: This code must only be reported for one month.

A mortgage loan is in the process of being assigned to the insurer or guarantor.

The delinquency is attributable to the death of the borrower.

The delinquency is attributable to a prolonged illness that keeps the borrower from working and generating income.

The delinquency is attributable to the borrower having incurred extraordinary expenses as the result of the illness of a family member (or having taken on the sole responsibility for repayment of the mortgage debt as the result of the co-borrower's illness).

The delinquency is attributable to the borrower having incurred extraordinary expenses as the result of the death of a family member (or having taken on the sole responsibility for repayment of the mortgage debt as the result of the co-borrower's death).

The delinquency is attributable to problems associated with a separation or divorce, such as a dispute over ownership of the property, a decision not to make payments until the divorce settlement is finalized, a reduction in the income available to repay the mortgage debt.

The delinquency is attributable to a reduction in the borrower's income, such as a garnishment of wages, a change to a lower paying job, reduced commissions or overtime pay, or loss of a part-time job.

The delinquency is attributable to the borrower having incurred excessive

• debts (either in a single instance or as a matter of habit) that prevent them from making payments on both those debts and the mortgage debt, or
• energy-related costs or costs associated with the removal of environmental hazards in, on, or near the property.

The delinquency is attributable to the borrower having abandoned the property for reason(s) that are not known by the servicer (because the servicer has not been able to locate the borrower).

The delinquency is attributable to the borrower being transferred or relocated to a distant job location and incurring additional expenses for moving and housing in the new location, which affects their ability to pay both those expenses and the mortgage debt.

The delinquency is attributable to the condition of the improvements or the property (for example, substandard construction, expensive and extensive repairs needed, subsidence of sinkholes on property, impaired rights of ingress and egress) or the borrower's dissatisfaction with the property or the neighborhood.

The delinquency is attributable to the borrower having difficulty in selling the property.

The delinquency is attributable to the borrower needing rental income to make the monthly payments and having difficulty in finding a tenant for a one-unit investment property or for one- or four-unit property.

The delinquency is attributable to the borrower having entered active duty status and their military pay not being sufficient to enable the continued payment of the existing mortgage debt.

The delinquency is attributable to reasons that are not otherwise included in this list of applicable codes.

The delinquency is attributable to a reduction in income resulting from a borrower having lost their job.

The delinquency is attributable to a self-employed borrower having a reduction in income and/or excessive obligations that are the direct result of the failure of their business to remain a viable entity or, at least, to generate sufficient profit that the borrower can rely on to meet their personal obligations.

The delinquency is attributable to the borrower having incurred a sudden, unexpected property loss as a result of fire, storm, theft, earthquake, or flood.

The delinquency is attributable to the borrower being dissatisfied with the way the servicer is servicing the mortgage loan or with the fact that servicing of the mortgage loan has been transferred to a new servicer.

The delinquency is attributable to the borrower being unable to make a new payment that resulted from an increase related to a scheduled payment change for a graduated-payment or ARM loan; increased monthly escrow accruals that are needed to pay higher taxes, insurance premiums, or special assessments; or the spreading of the amount needed to repay an escrow shortage over the next year.

The delinquency is attributable to a disagreement between the borrower and the servicer about the amount of the monthly payment, the acceptance of a partial payment, or the application of previous payments that results in the borrower's refusal to make the payment(s) until the dispute is resolved.

The delinquency is attributable to the borrower having agreed to sell the property and deciding not to make any additional payments.

The delinquency is attributable to a legal dispute arising out of a fraudulent or illegal action that occurred in connection with the origination of the mortgage loan (or later).

The reason for the delinquency cannot be ascertained because the borrower cannot be located or has not responded to the servicer's inquiries.

The delinquency is attributable to the borrower having been jailed or imprisoned (regardless of whether they are still incarcerated).