Fannie Mae Servicing Guide D2-3.2-01 — Forbearance Plan

Fannie Mae Servicing Guide D2-3.2-01 — Forbearance Plan

D2-3.2-01, Forbearance Plan (04/08/2026) Introduction This topic contains the following: Determining Eligibility for a Forbearance Plan Forbearance Plan Terms Forbearance Plan Flexibilities for Borrowers with a Disaster-Related Hardship Contacting a Borrower During a Forbearance Plan Term Forbearance Plan Completion or Termination Handling Late Charges in Connection with a Forbearance Plan Determining Eligibility for a Forbearance Plan The servicer is authorized to evaluate the borrower for a forbearance plan without receiving a complete BRP. The following table provides the eligibility criteria for a forbearance plan at the time of evaluation. ✓ Eligibility Criteria for a forbearance plan The servicer must achieve QRPC with the borrower (see D2-2-01, Achieving Quality Right Party Contact with a Borrower) for additional information. Note: If the borrower’s hardship is due to a disaster event, the servicer is authorized to offer a forbearance plan without achieving QRPC in accordance with Forbearance Plan Flexibilities for Borrowers with a Disaster-Related Hardship below. The borrower must have an eligible hardship. Note: While a BRP is not required, see the Mortgage Assistance Application (Form 710) for types of eligible hardships. The property securing the mortgage loan must be a principal residence. Note: If the borrower’s hardship is due to a disaster event, the property securing the mortgage loan may be a second home or an investment property. The property securing the mortgage loan must not be condemned or abandoned. Note: The property securing the mortgage loan may be vacant. If the servicer determines the borrower is not eligible for a forbearance plan but there are acceptable mitigating circumstances, it must request Fannie Mae’s prior written approval by submitting a completed Forbearance Exception Request Template. Generally, the servicer’s determination of acceptable mitigating circumstances is based on a review of the borrower’s complete BRP. Published May 13, 2026 324 Forbearance Plan Terms The borrower's monthly payment must be reduced or suspended during the forbearance plan term. When the servicer requires the borrower to make reduced payments, the payment must be received on or before the last day of the month in which it is due, unless the servicer determines that acceptable mitigating circumstances caused the payment to be late. Forbearance plan terms must be in increments of no greater than three months at a time and must not be extended beyond a date that would exceed a cumulative term of 12 months as measured from the start date of the initial forbearance plan, or result in the mortgage loan becoming greater than 12 months delinquent. For a forbearance plan to exceed the limits referenced above, the servicer is authorized to request Fannie Mae's prior written approval by submitting a completed Forbearance Exception Request Template and must receive such approval before granting any additional term(s). See the requirements for requesting forbearance plan extensions for disaster-impacted borrowers in Forbearance Plan Flexibilities for Borrowers with a Disaster- Related Hardship, below. When the servicer initially offers an arrangement that includes a combination of both forbearance and a repayment plan, the combined period must not exceed 36 months. For an MBS mortgage loan, the servicer must not allow a forbearance plan to extend beyond the last scheduled payment date of the mortgage loan. Additionally, the servicer must identify and distinguish the pool issue date and be familiar with the reclassification requirements (see A1-3-06, Automatic Reclassification of MBS Mortgage Loans for additional information). The forbearance plan details must be provided to the borrower with an Evaluation Notice. See Sending a Notice of Decision on a Workout Option in D2-2-05, Receiving a Borrower Response Package for additional information. Note: If the mortgage loan is a second lien mortgage loan, the servicer must include a provision for automatic termination of the forbearance plan when the first lien mortgage loan goes into foreclosure. Forbearance Plan Flexibilities for Borrowers with a Disaster-Related Hardship If the borrower's hardship is due to a disaster event (see Chapter D1-3, Providing Assistance to a Borrower Impacted by a Disaster Event for additional information) the servicer is authorized to offer an initial forbearance plan term of up to 3 months without achieving QRPC if the property securing the mortgage loan is located in a FEMA-Declared Disaster Area eligible for Individual Assistance, the mortgage loan was current or less than two months delinquent at the time the disaster event occurred, and the mortgage loan is equal to or greater than one month delinquent. The servicer must continue attempts to achieve QRPC during this initial 3-month forbearance plan term. Published May 13, 2026 325 If a borrower with a disaster-related hardship requests additional time to resolve their hardship that would result in an extension beyond the thresholds outlined in Forbearance Plan Terms above, the servicer must submit each instance for Fannie Mae's review and decision by submitting a completed Forbearance Exception Request Template. Contacting a Borrower During a Forbearance Plan Term The servicer must begin attempts to contact the borrower no later than 30 days prior to the expiration of any forbearance plan term and must continue outreach attempts until either QRPC is achieved or the forbearance plan term has expired. The following table provides the requirements the servicer must follow depending upon whether QRPC is achieved when the borrower’s hardship is not related to a disaster event. If QRPC... Then the servicer must determine... is achieved • if the borrower’s hardship has been resolved, • the borrower’s intention with respect to the property, and • whether the borrower needs to submit a complete BRP to be evaluated for other workout options. is not achieved • if the borrower is eligible for a payment deferral and, if eligible, solicit the borrower in accordance with D2-3.2-04, Payment Deferral; or • if the borrower is ineligible for a payment deferral but eligible for a Fannie Mae Flex Modification, then the servicer must solicit the borrower in accordance with D2-3.2-06, Fannie Mae Flex Modification. If the borrower has a disaster-related hardship, 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 for evaluating and soliciting the borrower for a workout option. See A4-2.1-04, Establishing Contact with the Borrower and D2-2-04, Sending a Borrower a Solicitation Package for a Workout Option for additional information on contacting the borrower and sending a Borrower Solicitation Package. Forbearance Plan Completion or Termination Once the forbearance plan is complete, one of the following must occur: the mortgage loan must be brought current through a reinstatement, Published May 13, 2026 326 the borrower is approved for another workout option, the mortgage loan is paid in full, or the servicer refers the mortgage loan to foreclosure in accordance with applicable law. The servicer must terminate the forbearance plan if it determines: the borrower failed to meet the terms specified in the Evaluation Notice, any of the eligibility criteria for the forbearance plan are no longer satisfied, the borrower’s hardship is resolved, or the borrower requests that the forbearance plan be terminated. Handling Late Charges in Connection with a Forbearance Plan The servicer must not accrue or collect late charges from the borrower during the forbearance plan. If the borrower defaults on the terms of the forbearance plan, the servicer is authorized to accrue late charges from the date the borrower defaulted on the plan. Recent Related Announcements The table below provides references to recently issued Announcements that are related to this topic. Announcements Issue Date Announcement SVC-2026-03 April 8, 2026 Announcement SVC-2023-05 October 11, 2023 Announcement SVC-2020-04 September 9, 2020

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