source:
  type: guide
  id: fnma-svc-d2-3.4-01
  authority: Fannie Mae Servicing Guide D2-3.4-01 — Military Indulgence
  description: Fannie Mae Servicing Guide D2-3.4-01 — Military Indulgence.
  coverage_tier: operative
obligations:
- id: fnma-svc-d2-3.4-01-full
  canonical_id: fnma-svc-d2-3.4-01-full
  section: Fannie Mae Servicing Guide D2-3.4-01 — Military Indulgence
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide D2-3.4-01 — Military Indulgence
    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: 'D2-3.4-01, Military Indulgence (06/13/2018) Introduction SCRA
      provides protection and relief to civilians who incur a mortgage debt and subsequently
      enter military service, including members of the National Guard who are called
      to active duty by federal authorities. Fannie Mae’s military indulgence policy
      covers those servicemembers entitled to relief under SCRA as well as members
      of the National Guard or other state-supported military unit who are called
      to active duty by a state governor and entitled to state-mandated relief. The
      relief generally begins when the individual reports for active duty and ends
      a period of time after they are separated from active duty. The servicer must
      grant relief in compliance with applicable law (see A3-2-01, Compliance with
      Laws). Initiating Relief Reducing the Interest Rate Initiating or Proceeding
      with Foreclosure Proceedings Initiating Relief Before granting any military
      indulgence (which includes any protection aﬀorded to a servicemember by applicable
      law), the servicer must document the servicemember’s active duty orders using
      (i) Fannie Mae’s Request for Military Indulgence (Form 180) or (ii) other sources
      (such as a report certifying the active duty status for a servicemember from
      the Defense Manpower Data Center, an organization within the Department of Defense)
      and other forms such as the Mortgage Assistance Application (Form 710), or equivalent,
      to document ﬁnancial and hardship information. While use of Form 180 is optional,
      it reﬂects the minimum level of information the servicer must obtain to verify
      the servicemember’s active duty orders, unless the servicemember is requesting
      assistance in addition to the assistance that is required under the SCRA. Note:
      The servicer is authorized to identify servicemembers who may be eligible for
      Fannie Mae’s military indulgence by using the Defense Manpower Data Center’s
      SCRA website database, and proactively inform active duty servicemembers of
      Fannie Mae’s military indulgence options. The servicer should contact the eligible
      servicemember or their family, at a minimum, every three months to determine
      when their active duty status will end. The servicer must waive any late charges
      that became due after the servicemember was called to active duty. If the servicemember
      receives a military indulgence forbearance in accordance with applicable law,
      the servicer Published May 13, 2026 389 must consider the mortgage loan to be
      current as long as the servicemember remits the amount, if any, required in
      accordance with the terms of the military indulgence forbearance. Reducing the
      Interest Rate The servicer must grant an eligible servicemember a reduction
      in the interest rate to 6% in accordance with the provisions of the SCRA; provided,
      however, that the servicer must not exercise the option provided by the SCRA
      to apply to a court for relief from reducing the interest rate to 6% if the
      servicer is of the opinion that the servicemember’s ability to pay interest
      at a rate in excess of 6% per year is not materially aﬀected by reason of the
      servicemember’s military service. The servicer should make the new interest
      rate eﬀective with the ﬁrst payment due after the servicemember (i) enters active
      duty or (ii) is entitled to the new interest rate under the SCRA. If the servicemember
      is unable to make the full monthly payment after the interest rate is reduced
      to 6%, see Chapter D2-3, Fannie Mae’s Home Retention and Liquidation Workout
      Options for additional information on workout options that may be available.
      In addition to reducing the interest rate to 6%, the servicer must reapply any
      prepaid monthly payments with due dates during the period of active duty at
      the 6% interest rate. If the servicemember fails to notify the servicer when
      they enter active duty status, but subsequently provides evidence of the active
      duty status, the servicer must reapply any monthly payments made during the
      period of active duty at the 6% interest rate. Installments that are delinquent
      when the servicemember enters active duty status must be paid at the interest
      rate that was in eﬀect when the payments came due. The servicer must provide
      the following options to the servicemember regarding the treatment of any remaining
      funds after any reapplication: application as a monthly payment, if suﬃcient;
      application as a principal curtailment; or a refund to the servicemember. The
      servicer must follow the procedures in Determining the Monthly Mortgage Payment
      Amount for calculating the monthly payment amount during and after the servicemember’s
      active duty and in Determining the Servicing Fee Amount for calculating the
      servicing fee in F-1-19, Processing a Military Indulgence. The servicer must
      provide written correspondence to the servicemember that indicates the new payment
      amount, the date it becomes eﬀective, and the date it will be discontinued and
      the servicemember is not required to execute any document to reﬂect the reduced
      interest rate attributable to the military indulgence. Initiating or Proceeding
      with Foreclosure Proceedings The servicer must attempt to ascertain the military
      status of the mortgagor(s) before initiating foreclosure proceedings and must
      comply with speciﬁc state or local laws that address the eﬀect of the SCRA on
      the foreclosure process, or that impose other restrictions or limitations on
      foreclosure for servicemembers. The servicer must stay any foreclosure proceedings
      that were already in process or postpone the initiation of foreclosure proceedings
      against a servicemember eligible for military indulgence. The servicer must
      also provide a 12–month extended stay of foreclosure and other legal proceedings
      from the date on which military service ends. The servicer must not attempt
      to obtain the eligible servicemember’s written consent or petition the court
      to continue or commence foreclosure proceedings. Published May 13, 2026 390
      Recent Related Announcements There are no recently issued Announcements related
      to this topic. D2-3.4-02, Oﬀering a Mortgage Release (Deed-in-Lieu of Foreclosure)
      for a Second Lien Mortgage Loan (11/12/2014) Introduction This topic contains
      information on oﬀering a mortgage release (deed-in-lieu of foreclosure) for
      a second lien mortgage loan. Oﬀering a Mortgage Release (Deed-in-Lieu of Foreclosure)
      for a Second Lien Mortgage Loan Oﬀering a Mortgage Release (Deed-in-Lieu of
      Foreclosure) for a Second Lien Mortgage Loan The following table provides the
      requirements for the servicer of a seriously delinquent second lien mortgage
      loan when evaluating a borrower for a Mortgage Release. ✓ The servicer must...
      Coordinate with the ﬁrst lien mortgage loan servicer regarding any proposed
      action related to the acceptance of a Mortgage Release to determine the following:
      • status of the ﬁrst lien mortgage loan, • intentions of the ﬁrst lien mortgage
      loan servicer, and • possibility of a mutually arranged disposition. Order an
      Owner and Encumbrance Report to ensure that there are no other outstanding liens.
      The servicer must obtain Fannie Mae’s prior approval to accept a Mortgage Release.
      The servicer must follow the procedures in Requesting Approval for a Mortgage
      Release for a Second Lien Mortgage Loan in F-1-24, Requesting Fannie Mae’s Approval
      via Fannie Mae’s Servicing Solutions System for requesting Fannie Mae’s approval
      of a Mortgage Release. Recent Related Announcements There are no recently issued
      Announcements related to this topic. Published May 13, 2026 391'
  judgment: false
