Fannie Mae Servicing Guide D2-2-06 — Sending a Breach or Acceleration Letter

Fannie Mae Servicing Guide D2-2-06 — Sending a Breach or Acceleration Letter

D2-2-06, Sending a Breach or Acceleration Letter (11/14/2018) Introduction This topic contains the following: Requirements for Conventional Mortgage Loans Requirements for Government Mortgage Loans Published May 13, 2026 304 Requirements for Conventional Mortgage Loans The servicer must issue the breach or acceleration letter as described in the following table. If the property securing a first lien mortgage loan is... Then the servicer must issue the breach or acceleration letter... not vacant or abandoned no later than the 75th day of delinquency. vacant or abandoned and the mortgage loan is greater than 30 days delinquent within 10 days from the determination of vacancy but no later than the 75th day of delinquency. Unless the servicer is able to contact the delinquent borrower and is discussing some type of workout option, the servicer must refer the mortgage loan to foreclosure upon expiration of the breach or acceleration letter. See E-1.2-02, Timing of the Foreclosure Referral for Mortgage Loans Generally for the timing and requirements for referring the mortgage loan to foreclosure. The following table lists the requirements for the content of the breach or acceleration letter. ✓ The breach or acceleration letter must clearly explain... The exact nature of the breach (for example, a default in payments). The action required to cure the breach. The date by which the breach must be cured. The possibility that a deficiency judgment might be pursued if the foreclosure proceedings are undertaken, if applicable. Requirements for Government Mortgage Loans For FHA and VA mortgage loans, the servicer must follow applicable FHA and VA guidelines. Recent Related Announcements There are no recently issued Announcements related to this topic. Published May 13, 2026 305 D2-2-07, Resolving an Appeal of a Mortgage Loan Modification Trial Period Plan Denial for a Principal Residence (05/10/2017) Introduction This topic contains information on resolving an appeal of a mortgage loan modification Trial Period Plan denial for a principal residence only. Resolving an Appeal of a Mortgage Loan Modification Trial Period Plan Denial for a Principal Residence Resolving an Appeal of a Mortgage Loan Modification Trial Period Plan Denial for a Principal Residence 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 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. Published May 13, 2026 306 If the servicer receives… Then the servicer… the borrower’s appeal within the 14-day appeal period and any new information must evaluate the appeal and accept any new information submitted by the borrower within this time frame as part of the independent appeal review. the borrower’s appeal within the 14-day appeal period, but the servicer receives any new information or documentation after the 14-day appeal period but before the appeal decision is issued is authorized to • complete the review with any new information or documentation provided by the borrower as part of the appeals process; or • treat the request along with any additional information as part of a new complete BRP and review the complete BRP in accordance with D2-2, Requirements for Contacting a Borrower and E-3, Managing Foreclosure Proceedings. the borrower’s appeal after the 14-day appeal period 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. ✓ The servicer must... Send the borrower an offer for such a Trial Period Plan for which the borrower was initially denied. Provide the borrower 14 days from the date of the servicer’s appeal decision notice to indicate their intent to accept either the new offer or the initial offer, provided that the borrower continues to be eligible for the initial offer, in accordance with Sending a Notice of Decision on a Workout Option in D2-2-05, Receiving a Borrower Response Package. 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... Determine whether the borrower continues to be eligible for the initial offer without considering any accrued amounts. Published May 13, 2026 307 ✓ The servicer must... Adjust the due dates of the initial offer, as applicable, accordingly. 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. ✓ The servicer must... Adjust the payment amount of the initial offer. Note: For Trial Period Plans, the servicer is authorized to adjust the payment amount at the beginning of the Trial Period Plan or after the borrower’s successful completion of the Trial Period Plan. Use the same approach to adjusting the payment amount consistently on all mortgage loans it services for Fannie Mae. Reissue the initial offer to reflect any adjusted dates and/or payment amounts. 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. If the servicer sends the appeal decision... Then the Trial Period Plan effective date and the due date of the first Trial Period Plan payment is... on or before the 15th of the month the first day of the next month. after the 15th of the month the first day of the month after the next month. 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. Recent Related Announcements There are no recently issued Announcements related to this topic. Published May 13, 2026 308

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