Fannie Mae Servicing Guide E-2.1-11 — Remitting P&I for MBS Mortgage Loans That Are Part of a Bankruptcy

Fannie Mae Servicing Guide E-2.1-11 — Remitting P&I for MBS Mortgage Loans That Are Part of a Bankruptcy

E-2.1-11, Remitting P&I for MBS Mortgage Loans That Are Part of a Bankruptcy (07/13/2022) Introduction This topic contains the following: Overview Removing Regular Servicing Option MBS Mortgage Loans Upon Confirmation of a Bankruptcy Plan Reclassifying Special Servicing Option MBS Mortgage Loans Upon Confirmation of a Bankruptcy Plan Overview Unless Fannie Mae has placed the mortgage loan in the Stop Delinquency Advance process, the servicer must report and remit the P&I to Fannie Mae each month as scheduled under the original terms of the mortgage loan as long as any mortgage loan remains in its MBS pool, regardless of servicing option or delinquency status. See C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae. See also E-2.3-03, Handling Cramdowns of the Mortgage Debt for more information regarding P&I remittance on loans subject to cramdowns in bankruptcy, and F-1-20, Remitting and Accounting to Fannie Mae for details on the Stop Delinquency Advance process. For example, an MBS mortgage loan in an MBS pool issued prior to June 1, 2007 that is current (or has not been in a continuous state of delinquency for at least four consecutive payment due dates) in the month in which the Order of Confirmation is entered will remain in its MBS pool. Removing Regular Servicing Option MBS Mortgage Loans Upon Confirmation of a Bankruptcy Plan The following table outlines the time frame within which a servicer may purchase a regular servicing option Published May 13, 2026 421 mortgage loan from an MBS pool. If a regular servicing option mortgage loan is in an MBS pool… Then the servicer may purchase such MBS mortgage loan… issued on or after June 1, 2007 following the earlier of: • the confirmation of a plan that modifies the terms of the MBS mortgage loan; or • the loan having been in a continuous state of delinquency for at least four consecutive monthly payment due dates, or at least eight consecutive payment due dates in the case of a biweekly mortgage loan, without a full cure during that period. issued prior to June 1, 2007 after the mortgage loan has been in a continuous state of delinquency for at least four consecutive monthly payment due dates, or at least eight consecutive monthly payment due dates in the case of a biweekly mortgage loan, without a full cure during that period. A regular servicing option MBS mortgage loan that has been repurchased from its MBS pool is not eligible for redelivery. Reclassifying Special Servicing Option MBS Mortgage Loans Upon Confirmation of a Bankruptcy Plan The following table outlines the time frame within which a special servicing option mortgage loan may be reclassified from an MBS pool. If a special servicing option mortgage loan is in an MBS pool... Then the mortgage loan may be reclassified... issued on or after June 1, 2007 following the earlier of: • the confirmation of a reorganization plan that modifies the terms of the MBS mortgage loan; or • the loan having been in a continuous state of delinquency for at least 24 consecutive monthly payment due dates, or at least 48 consecutive payment due dates in the case of a biweekly mortgage loan, without a full cure during that period. Published May 13, 2026 422 If a special servicing option mortgage loan is in an MBS pool... Then the mortgage loan may be reclassified... issued prior to June 1, 2007 after the mortgage loan has been in a continuous state of delinquency for at least 24 consecutive monthly payment due dates, or at least 48 consecutive payment due dates in the case of a biweekly mortgage loan, without a full cure during that period. The mortgage loan may already appear on Fannie Mae’s list of delinquent mortgage loans due for reclassification. If not, the servicer must contact its Fannie Mae Servicing Representative (see F-4-02, List of Contacts) to request that the mortgage loan be added to the reclassifications scheduled for the month in which the plan is confirmed. If the opportunity to do so in the current month has expired, the servicer may request that the mortgage loan be added to the reclassifications for the following month. Recent Related Announcements The table below provides references to recently issued Announcements that are related to this topic. Announcements Issue Date Announcement SVC-2022-05 July 13, 2022 Announcement SVC-2021-01 January 20, 2021 Section E-2.2, Managing Bankruptcies by Chapter

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