source:
  type: guide
  id: fnma-svc-f-1-18
  authority: Fannie Mae Servicing Guide F-1-18 — Processing a Workout Incentive Fee
  description: Fannie Mae Servicing Guide F-1-18 — Processing a Workout Incentive
    Fee.
  coverage_tier: operative
obligations:
- id: fnma-svc-f-1-18-full
  canonical_id: fnma-svc-f-1-18-full
  section: Fannie Mae Servicing Guide F-1-18 — Processing a Workout Incentive Fee
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide F-1-18 — Processing a Workout Incentive
      Fee
    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: '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'
  judgment: false
