Fannie Mae Servicing Guide F-1-18 — Processing a Workout Incentive Fee

Fannie Mae Servicing Guide F-1-18 — Processing a Workout Incentive Fee

F-1-18, Processing a Workout Incentive Fee (10/11/2023) Introduction This Servicing Guide Procedure contains the following: Incentive Fee for a Repayment Plan Incentive Fee for a Mortgage Loan Modification or a Payment Deferral Incentive Fee for a Short Sale Incentive Fee for a Mortgage Release Incentive Fee for a Repayment Plan The servicer must evaluate a mortgage loan for workout options in accordance with D2-3.1-01, Determining the Appropriate Workout Option. When a repayment plan is considered to be the appropriate workout option, Fannie Mae will review eligibility for the repayment plan incentive fee and make the final determination based on information provided by the servicer; therefore, the servicer is not required to submit requests for payment of repayment plan incentive fees. Repayment plan incentive fees on eligible mortgage loans will be sent to the servicer on a monthly basis. After a repayment plan is established, the following criteria must be satisfied: the servicer must report the repayment plan using Fannie Mae’s servicing solutions system by the second business day of the month following the month the plan was entered into with the borrower; and the servicer must continue to report each month that the borrower is on a repayment plan until the mortgage loan becomes current, the borrower defaults on the terms of the repayment plan, or the mortgage loan is liquidated. Incentive Fee for a Mortgage Loan Modification or a Payment Deferral The servicer must evaluate a mortgage loan for workout options in accordance with D2-3.1-01, Determining the Appropriate Workout Option. An incentive fee payment for an eligible mortgage loan modification or a payment deferral will be disbursed as outlined in the following table. Step Required Action 1 The servicer enters a closed case into Fannie Mae’s servicing solutions system. Published May 13, 2026 628 Step Required Action 2 Fannie Mae reviews eligibility for the mortgage loan modification or payment deferral incentive fee and makes the determination based on information provided by the servicer through Fannie Mae’s servicing solutions system. 3 If eligible, Fannie Mae pays the incentive fee on a monthly basis. Note: The servicer must not submit a request for expense reimbursement for the incentive fee. Also see Reimbursing Fannie Mae for a Workout Incentive Fee Related to a Cancelled Mortgage Loan Modification or Payment Deferral in F-1-05, Expense Reimbursement for the requirements for reimbursing Fannie Mae for a previously paid workout incentive fee when a mortgage loan modification or payment deferral is cancelled. Incentive Fee for a Short Sale The servicer must evaluate a mortgage loan for workout options in accordance with D2-3.1-01, Determining the Appropriate Workout Option. An incentive fee payment for an eligible short sale is disbursed as outlined in the following table. Step Required Action 1 The servicer enters a closed case into Fannie Mae’s servicing solutions system. 2 Fannie Mae reviews eligibility for the short sale incentive fee and makes the determination based on information provided by the servicer through Fannie Mae’s servicing solutions system. 3 If eligible, Fannie Mae pays the incentive fee on a monthly basis two months following the month in which the short sale was closed in Fannie Mae’s servicing solutions system. Note: The servicer must not submit a request for expense reimbursement for the incentive fee. Incentive Fee for a Mortgage Release The servicer must evaluate a mortgage loan for workout options in accordance with D2-3.1-01, Determining the Appropriate Workout Option. An incentive fee payment for an eligible Mortgage Release is disbursed as outlined in the following table. Published May 13, 2026 629 Step Required Action 1 The servicer enters a closed case into Fannie Mae’s servicing solutions system. 2 Fannie Mae reviews eligibility for the Mortgage Release incentive fee and makes the determination based on information provided by the servicer through Fannie Mae’s servicing solutions system. 3 If eligible, Fannie Mae pays the incentive fee on a monthly basis two months following the month in which the Mortgage Release was closed in Fannie Mae’s servicing solutions system. Note: The servicer must not submit a request for expense reimbursement for the incentive fee. Recent Related Announcements The table below provides references to recently issued Announcements that are related to this topic. Announcements Issue Date Announcement SVC-2023-05 October 11, 2023 Announcement SVC-2020-04 September 9, 2020

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