F-2-10, Fannie Mae’s Workout Hierarchy (12/09/2020)

Introduction

This exhibit contains Fannie Mae’s Workout Hierarchy.

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.

Note: See Workout Hierarchy for When a Borrower is Affected by a Disaster Event in D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower for the workout hierarchy in instances where the servicer determines that the borrower is unable to resolve a delinquency resulting from a disaster-related hardship through a reinstatement and cannot afford a repayment plan.

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...
not been resolved	D2-3.2-01, Forbearance Plan D2-3.2-01, Forbearance Plan
been resolved and the borrower does not have the ability to reinstate the mortgage loan	D2-3.2-02, Repayment Plan D2-3.2-02, Repayment Plan
been resolved and the borrower does not have the ability to afford a repayment plan	D2-3.2-04, Payment Deferral D2-3.2-04, Payment Deferral
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: D2-3.2-06, Fannie Mae Flex Modification D2-3.2-06, Fannie Mae Flex Modification D2-3.3-01, Fannie Mae Short Sale D2-3.3-01, Fannie Mae Short Sale D2-3.3-02, Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure)D2-3.3-02, Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure) 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.