source:
  type: guide
  id: fnma-svc-d2-3.1-02
  authority: Fannie Mae Servicing Guide D2-3.1-02 — Conditions of a First and Second
    Lien Mortgage Loan Modification for an MBS Mortgage Loan
  description: Fannie Mae Servicing Guide D2-3.1-02 — Conditions of a First and Second
    Lien Mortgage Loan Modification for an MBS Mortgage Loan.
  coverage_tier: operative
obligations:
- id: fnma-svc-d2-3.1-02-full
  canonical_id: fnma-svc-d2-3.1-02-full
  section: Fannie Mae Servicing Guide D2-3.1-02 — Conditions of a First and Second
    Lien Mortgage Loan Modification for an MBS Mortgage Loan
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide D2-3.1-02 — Conditions of a First and Second
      Lien Mortgage Loan Modification for an MBS Mortgage Loan
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: cf63a82bbb4adfba
    fetched_at: '2026-05-22T23:53:19Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'D2-3.1-02, Conditions of a First and Second Lien Mortgage Loan
      Modiﬁcation for an MBS Mortgage Loan (01/20/2021) Conditions of a First and
      Second Lien Mortgage Loan Modiﬁcation for an MBS Mortgage Loan Conditions of
      a First and Second Lien Mortgage Loan Modiﬁcation for an MBS Mortgage Loan The
      servicer must not modify a mortgage loan while it is in an MBS pool (including
      PFP mortgage loans). Performing MBS mortgage loans are ineligible for purchase
      from the related MBS pool for the purpose of modifying the mortgage loan term,
      interest rate, UPB, or other major characteristic(s) of the mortgage loan. However,
      if a special servicing option mortgage loan has been in a continuous state of
      delinquency for 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 of the delinquency during that period, then the mortgage loan may
      be modiﬁed after it is removed from the MBS pool. The servicer must ensure that
      the mortgage loan modiﬁcation is not implemented if the required Trial Period
      Plan payments are not made in accordance with the applicable mortgage loan modiﬁcation
      workout option, since the preconditions to make the mortgage loan modiﬁcation
      eﬀective have not been satisﬁed. The servicer must ensure that a mortgage loan
      modiﬁcation does not become eﬀective while it remains in an MBS pool. The mortgage
      loan modiﬁcation agreement must be executed after the mortgage loan has been
      removed from any MBS pool and reclassiﬁed as a Fannie Mae portfolio mortgage
      loan, and must reﬂect the actual date of the servicer’s execution. The servicer
      must follow the procedures in Reclassifying or Voluntary Repurchasing an MBS
      Mortgage Loan for a Mortgage Loan Modiﬁcation in F-1-25, Reclassifying or Voluntary
      Repurchasing an MBS Mortgage Loan to reclassify or voluntary repurchase, as
      applicable, the mortgage loan. The following table describes the requirements
      for removal of a mortgage loan from an MBS pool for the purpose of modifying
      the mortgage loan once the preconditions to make the mortgage loan modiﬁcation
      eﬀective have been satisﬁed. Published May 13, 2026 318 If the mortgage loan
      is... Then the mortgage loan must be... a regular servicing option mortgage
      loan or a shared-risk special servicing option mortgage loan for which the servicer’s
      shared risk liability has not expired purchased by the servicer from the MBS
      pool. a special servicing option mortgage loan or a shared- risk special servicing
      option mortgage loan for which Fannie Mae markets the acquired property reclassiﬁed
      through Fannie Mae’s standard reclassiﬁcation process. Note: For an MBS mortgage
      loan that is not subject to Fannie Mae’s automatic reclassiﬁcation process,
      the servicer must request reclassiﬁcation or a voluntary repurchase through
      Fannie Mae’s servicing solutions system. Regular servicing option MBS mortgage
      loans, and shared-risk special servicing option MBS mortgage loans for which
      the servicer''s shared risk liability has not expired, that have been removed
      from an MBS pool, and have been modiﬁed are not eligible for redelivery to Fannie
      Mae unless Fannie Mae agrees otherwise. If the servicer determines that a mortgage
      loan modiﬁcation is the appropriate workout option for an MBS mortgage loan
      with a pool issue date on or after January 1, 2009, and that the extraordinary
      circumstances relating to the mortgage loan justify the earlier removal of the
      mortgage loan from the MBS pool, it must request Fannie Mae’s prior written
      approval to remove a mortgage loan that has only one monthly payment delinquent
      if the delinquency has not been fully cured on or before the next payment date.
      See A1-3-06, Automatic Reclassiﬁcation of MBS Mortgage Loans for additional
      information on the reclassiﬁcation and removal of MBS mortgage loans. Recent
      Related Announcements The table below provides references to recently issued
      Announcements that are related to this topic. Announcements Issue Date Announcement
      SVC-2021-01 January 20, 2021'
  judgment: false
