Servicing

Retention Options

Fannie Mae offers servicers a flexible way to help more borrowers retain their homes while enduring a hardship. 

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) 

Loan Modification Options

Loan modifications might be available to homeowners who are experiencing a permanent or long-term hardship and whose loans are delinquent, or  are determined to be in imminent default in accordance with the Servicing Guide.

Flex Modification

The Flex Modification offers eligible homeowners mortgage payment relief in two ways:

  • For borrowers less than 90 days delinquent, the modification requires a complete Borrower Response Package and targets a 20% principal and interest payment reduction and 40% housing expense-to-income ratio.
  • For borrowers 90 or more days delinquent, the modification targets a 20% payment reduction and requires no Borrower Response Package.

Flex Modification also allows for providing principal forbearance in accordance with F-1-28 of the Servicing Guide.

Extend Modification for Disaster Relief

An Extend Modification for Disaster Relief extends the term of the loan by the number of months the homeowner was in a disaster-related forbearance plan. This is an option for a homeowner who is able to continue with their contractual monthly payments including escrow amounts that have been advanced by the servicer as a result of the disaster and any payments to cover escrow shortage. The mortgage loan must:

  • have been current or less than 31 days delinquent when the disaster occurred, and
  • be 31 or more days delinquent but less than 360 days delinquent upon completion of the forbearance plan.
Cap and Extend Modification for Disaster Relief

A Cap and Extend Modification helps finance the escrow amounts (like taxes and insurance) that the mortgage servicer may have paid on behalf of the homeowner while the homeowner was on a disaster-related forbearance plan. This is an option for a homeowner who can resume making monthly payments but cannot afford paying the additional escrow shortage. The mortgage loan must

  • have been current or less than 31 days delinquent when the disaster occurred, and
  • be 31 or more days delinquent but less than 360 days delinquent upon completion of the forbearance plan.
Borrower Assistance

Help Borrowers Avoid Foreclosure

  • Know Your Options is Fannie Mae's consumer education initiative that explains the range of options available to homeowners in extraordinary circumstances and provides guidance on how to seek help.
Delegation of Authority

For questions related to the Delegation of Authority documents, please contact [email protected].