Servicing

Loss Mitigation

Resources to help both servicers and borrowers manage delinquent mortgage loans and avoid foreclosure.

Guiding Homeowners Through Forbearance

New resources are available to support servicers having forbearance discussions with homeowners impacted by COVID-19.

View COVID-19 Forbearance Script for Servicer Use with Homeowners
View Script for Homeowners with a Resolved COVID-19 Hardship (Log in using Fannie Mae Connect™ credentials) 

Retention Options

Fannie Mae offers mortgage servicers flexible options to help homeowners retain their homes while enduring a temporary financial hardship. 

For more information, visit the Servicing Guide, Evaluating a borrower for a workout option.

Mortgage forbearance

A mortgage forbearance plan is an agreement between the mortgage servicer and the homeowner to pause or reduce monthly mortgage payments for a certain period, allowing homeowners to resolve their short-term hardship.

View Servicing Guide, D2-3.2-01, Forbearance Plan

Mortgage reinstatement

If the homeowner is able to resume making their regular monthly payments following a delinquency (or forbearance plan), and can repay the missed amounts all at once, the mortgage can be reinstated.

View Servicing Guide, F-2-11: Fannie Mae’s Workout Hierarchy

Mortgage repayment plans

A mortgage servicer evaluates a homeowner for a repayment plan when the delinquency results from a temporary  hardship that is now resolved. Homeowners repay the missed amounts over a period of six  months.  They make their repayments along with their regular mortgage payment on a monthly basis.

View Servicing Guide, D2-3.2-02: Repayment Plan

Payment deferral

A payment deferral adds (defers) missed payments (including any escrow advances made by the servicer on behalf of the homeowner for taxes and/or insurance) to the end of the mortgage loan term as a non-interest bearing balance. The balance is due at the maturity date or earlier upon the sale or transfer of the property, refinance of the mortgage loan, or payoff of the interest-bearing balance of the loan. Upon completing the payment deferral, the homeowner continues paying their regular monthly mortgage payment in accordance with its terms.

COVID-19 payment deferral 

Homeowners who miss up to 12 months of payments as a result of a financial hardship related to the coronavirus pandemic (COVID-19) are eligible for the COVID-19 payment deferral. This option defers unpaid amounts as a non-interest-bearing balance. The balance is due at the maturity date or earlier upon the sale or transfer of the property, refinance of the mortgage loan, or payoff of the interest-bearing balance of the loan. Upon completing the payment deferral, the homeowner continues paying their regular monthly mortgage payment in accordance with its terms.

View payment deferral overview

Loan modification

Homeowners may be able to modify their original mortgage terms, such as monthly payment amount, loan term, or interest rate. For more information, visit Loan Modification Options.

Disaster recovery

Following a disaster, homeowners can take advantage of mortgage forbearance plans for up to 12 months while they recover and rebuild. We rely on our mortgage servicers to implement our disaster assistance policies,  so they can help impacted homeowners.

Applications

Learn more about retention options

Non-Retention Options

When retention isn’t a viable option, Fannie Mae offers liquidation options.

Mortgage Release ™

A Mortgage Release allows the homeowner to voluntarily transfer the ownership of the property to the owner of your mortgage in exchange for a release from the mortgage loan and payments.

Short Sale

A short sale allows a borrower to sell their home for less than the balance remaining on the mortgage, avoiding a foreclosure.

Applications

Learn more about Non-Retention Options

Property Preservation

As part of overall neighborhood stabilization efforts, servicers must ensure the quality of property maintenance services throughout the default process to eliminate community blight and protect housing values.

Applications

Learn more about Property Preservation