source:
  type: guide
  id: fnma-svc-d2-3.2-04
  authority: Fannie Mae Servicing Guide D2-3.2-04 — Payment Deferral
  description: Fannie Mae Servicing Guide D2-3.2-04 — Payment Deferral.
  coverage_tier: operative
obligations:
- id: fnma-svc-d2-3.2-04-full
  canonical_id: fnma-svc-d2-3.2-04-full
  section: Fannie Mae Servicing Guide D2-3.2-04 — Payment Deferral
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide D2-3.2-04 — Payment Deferral
    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: 'D2-3.2-04, Payment Deferral (08/13/2025) Introduction This topic
      contains the following information: Determining Eligibility for a Payment Deferral
      Determining Eligibility for a Payment Deferral for a Texas Section 50(a)(6)
      Loan Performing an Escrow Analysis Determining the Payment Deferral Terms Completing
      a Payment Deferral Soliciting the Borrower for a Payment Deferral Requirement
      to Make a Payment During the Month of Solicitation and/or a Processing Month
      for a Payment Deferral Using the Solicitation Letters Processing a Payment Deferral
      for an MBS Mortgage Loan Processing a Payment Deferral for a Mortgage Loan with
      Mortgage Insurance Handling Fees and Late Charges in Connection with a Payment
      Deferral Evaluating Mortgage Loans Subject to a Temporary Interest Rate Buydown
      Plan for a Payment Deferral Determining Eligibility for a Payment Deferral The
      servicer is authorized to evaluate the borrower for a payment deferral without
      receiving a complete Borrower Response Package (BRP). When the servicer oﬀers
      a payment deferral without receiving a complete BRP, the servicer is not required
      to send an Evaluation Notice, or equivalent. If the borrower submitted a complete
      BRP, then the servicer must evaluate the borrower in accordance with D2-2-05,
      Receiving a Borrower Response Package. The servicer is authorized to use an
      Evaluation Notice, but must make the appropriate changes as necessary, including
      to the applicable Frequently Asked Questions, to reﬂect the terms of the payment
      deferral. In order to be eligible for a payment deferral, the following criteria
      must be met. ✓ Eligibility Criteria for a Payment Deferral The servicer must
      achieve QRPC with the borrower (see D2-2-01, Achieving Quality Right Party Contact
      with a Borrower for additional information). Additionally, the servicer must
      conﬁrm that the borrower: • has resolved the hardship; • is able to continue
      making the full monthly contractual payment, including the amount required to
      repay any escrow shortage amount over a term of 60 months; and • is unable to
      reinstate the mortgage loan or aﬀord a repayment plan to cure the delinquency.
      Published May 13, 2026 332 ✓ Eligibility Criteria for a Payment Deferral The
      mortgage loan must be a conventional ﬁrst lien mortgage loan, and may be a ﬁxed-rate,
      a step-rate, or an ARM. Note: The property securing the mortgage loan may be
      vacant or condemned. The mortgage loan must have been originated at least 12
      months prior to the evaluation date for a payment deferral. The mortgage loan
      must be equal to or greater than 2 months delinquent but less than or equal
      to 6 months delinquent as of the date of evaluation. The mortgage loan may receive
      more than one payment deferral; however, no more than 12 months of cumulative
      past-due P&I payments as the result of a payment deferral may be deferred over
      the life of the mortgage loan. Note: This cumulative cap does not include past-due
      P&I payments deferred as the result of a disaster payment deferral. The mortgage
      loan must not have received a prior payment deferral with an eﬀective date within
      12 months of the evaluation date. Note: This does not apply to a prior disaster
      payment deferral. As of the evaluation date, the mortgage loan must not be within
      36 months of its maturity or projected payoﬀ date. Note: If the borrower is
      otherwise eligible for a payment deferral and the servicer determines that a
      payment deferral is the appropriate solution based on the borrower''s circumstances,
      then the servicer is authorized to submit a request for a payment deferral through
      Fannie Mae''s servicing solutions system for review and to obtain prior approval
      from Fannie Mae. The mortgage loan must not be subject to • a recourse or indemniﬁcation
      arrangement under which Fannie Mae purchased or securitized the mortgage loan
      or that was imposed by Fannie Mae after the mortgage loan was purchased or securitized,
      • an approved liquidation workout option, • an active and performing repayment
      plan, • a current oﬀer for another retention workout option, or • an active
      and performing mortgage loan modiﬁcation Trial Period Plan. Published May 13,
      2026 333 ✓ Eligibility Criteria for a Payment Deferral The borrower must not
      have failed a non-disaster related mortgage loan modiﬁcation Trial Period Plan
      within 12 months of being evaluated for eligibility for a payment deferral.
      Note: Converting from a Trial Period Plan to a forbearance plan is not considered
      a failed Trial Period Plan. The mortgage loan must not have been modiﬁed with
      a non-disaster related mortgage loan modiﬁcation within the previous 12 months
      of being evaluated for eligibility for a payment deferral. Determining Eligibility
      for a Payment Deferral for a Texas Section 50(a)(6) Loan A Texas Section 50(a)(6)
      loan is eligible for a payment deferral if the requirements described in Determining
      Eligibility for a Payment Deferral are satisﬁed, and the application of a payment
      deferral to the mortgage loan complies with applicable law. If the servicer
      receives notice from the borrower that a payment deferral fails to comply with
      Texas Section 50(a)(6) requirements, the servicer must immediately, but no later
      than seven business days after receipt, take the actions listed in the following
      table. ✓ The servicer must Inform Fannie Mae''s Legal department by submitting
      a Non-Routine Litigation Form (Form 20) and include the borrower notice in its
      submission. Collaborate with Fannie Mae on the appropriate response, including
      any cure that may be necessary, within the 60-day time frame provided by the
      requirements of Texas Section 50(a)(6). Performing an Escrow Analysis The servicer
      must perform an escrow analysis prior to oﬀering a payment deferral. See Administrating
      an Escrow Account in Connection With a Payment Deferral in B-1-01, Administering
      an Escrow Account and Paying Expenses for additional information. Any escrow
      account shortage that is identiﬁed at the time of the payment deferral must
      not be included in the non-interest-bearing balance and the servicer is not
      required to fund any existing escrow account shortage. If applicable law prohibits
      the establishment of the escrow account, the servicer must ensure that the T&I
      payments are paid to date. Published May 13, 2026 334 Determining the Payment
      Deferral Terms The servicer must defer the following amounts as a non-interest-bearing
      balance, due and payable at maturity of the mortgage loan, or earlier upon the
      sale or transfer of the property, reﬁnance of the mortgage loan, or payoﬀ of
      the interest-bearing UPB: at least 2 months and up to 6 months of past-due P&I
      payments, provided that it does not result in more than 12 months of past-due
      P&I payments cumulatively deferred over the life of the mortgage loan as a result
      of the payment deferral; out-of-pocket escrow advances resulting from a delinquency
      and paid to third parties, provided they are paid prior to the eﬀective date
      of the payment deferral; and servicing advances resulting from a delinquency,
      paid to third parties in the ordinary course of business, and not retained by
      the servicer, provided they are paid prior to the eﬀective date of the payment
      deferral, if allowed by state law. All other terms of the mortgage loan must
      remain unchanged. Any existing non-interest-bearing balance on the mortgage
      loan remains due and payable at maturity of the mortgage loan, or earlier upon
      the sale or transfer of the property, reﬁnance of the mortgage loan, or payoﬀ
      of the interest-bearing UPB. Also see A4-2.1-07, Servicer''s Duties and Responsibilities
      Related to Mortgage Loans with an Outstanding Non- Interest-Bearing Balance
      for additional information. Completing a Payment Deferral Fannie Mae considers
      a payment deferral to be completed when the case is submitted into Fannie Mae''s
      servicing solutions system, including entry of loan-level information such as
      the applicable campaign ID to identify a payment deferral. The case must be
      entered by the last day of the month in which the evaluation took place. If
      the servicer is unable to complete the payment deferral prior to the 15th day
      of the evaluation month, then the servicer is authorized to allow for suﬃcient
      processing time (via a "processing month") to complete a payment deferral. The
      servicer must treat all borrowers equally in applying the processing month,
      as evidenced by a written policy. The servicer must send the payment deferral
      agreement, or equivalent, to the borrower no later than ﬁve days after the completion
      of the payment deferral. While use of the payment deferral agreement is optional,
      it reﬂects the minimum level of information that the servicer must communicate
      and illustrates a level of speciﬁcity that complies with the requirements of
      the Servicing Guide. Also, the servicer must ensure the payment deferral agreement
      complies with applicable law. Note: If the servicer determines the borrower’s
      signature is required on the payment deferral agreement, it must receive the
      executed agreement prior to completing the payment deferral. The servicer represents
      and warrants that application of the payment deferral to the mortgage loan must
      not impair Fannie Mae''s ﬁrst lien position or enforceability against the borrower(s)
      in accordance with its terms. Published May 13, 2026 335 The servicer must also
      provide documents to the document custodian in accordance with the following
      table. If the payment deferral agreement is... Then the servicer must send...
      not required to be signed by the borrower a copy of the payment deferral agreement
      signed by the servicer to the document custodian within 25 days of the eﬀective
      date of the payment deferral. required to be signed by the borrower but not
      recorded the fully executed original payment deferral agreement to the document
      custodian within 25 days of the eﬀective date of the payment deferral. required
      to be recorded • a certiﬁed copy of the fully executed payment deferral agreement
      to the document custodian within 25 days of the eﬀective date of the payment
      deferral, and • the original payment deferral agreement that is returned from
      the recorder’s oﬃce to the document custodian within 5 business days of receipt.
      Soliciting the Borrower for a Payment Deferral If the servicer is unable to
      achieve QRPC as described in Contacting a Borrower During a Forbearance Plan
      Term in D2-3.2-01, Forbearance Plan with a borrower on a forbearance plan and
      the borrower is otherwise eligible for a payment deferral, the servicer must
      solicit the borrower for a payment deferral within 15 days after expiration
      of the forbearance plan. If the borrower does not make their total monthly repayment
      plan payment by the end of the month in which it is due, then the servicer must
      solicit the borrower for a payment deferral by the 15th day of the following
      month provided that QRPC has not been achieved and the borrower is otherwise
      eligible for a payment deferral. See Using Solicitation Letters later in this
      topic for additional information. The servicer must also refer to Solicitating
      the Borrower for a Fannie Mae Flex Modiﬁcation in D2-3.2-06, Fannie Mae Flex
      Modiﬁcation for when to solicit the borrower for a Fannie Mae Flex Modiﬁcation.
      Requirement to Make a Payment During the Month of Solicitation and/or a Processing
      Month for a Payment Deferral The borrower must make their full monthly contractual
      payment during the month of solicitation and/or during the processing month
      if, as of the date of evaluation, the mortgage loan is 6 months delinquent,
      or the payment deferral would cause the mortgage loan to exceed 12 months of
      cumulative deferred past- Published May 13, 2026 336 due P&I payments over the
      life of the mortgage loan. In this circumstance, the servicer must complete
      the payment deferral within the solicitation month and/or the processing month
      as applicable after receipt of the borrower''s full monthly contractual payment
      due during that month. Using the Solicitation Letters When soliciting the borrower
      for a payment deferral, the servicer must use the Payment Deferral Post- Forbearance
      Plan Solicitation Cover Letter or the Payment Deferral Post-Repayment Solicitation
      Cover Letter, as applicable, with the payment deferral agreement or the equivalent,
      making any appropriate changes to comply with applicable law. While use of these
      documents is optional, they reﬂect the minimum level of information that the
      servicer must communicate and illustrate a level of speciﬁcity that complies
      with the requirements of the Servicing Guide. The servicer must ensure that
      all documents comply with applicable law. The servicer must include instruction
      on how to accept the solicitation in the payment deferral agreement. The servicer
      is authorized to consider the following as acceptance by the borrower, subject
      to applicable law: the borrower contacting the servicer directly in accordance
      with any acceptable outreach and communication method, the borrower returning
      an executed payment deferral agreement, or any other method evidencing the borrowers
      acceptance as determined by the servicer. Processing a Payment Deferral for
      an MBS Mortgage Loan MBS mortgage loans subject to a payment deferral will not
      be subject to automatic reclassiﬁcation as described in A1-3-06, Automatic Reclassiﬁcation
      of MBS Mortgage Loans. In addition, the servicer must not make a manual reclassiﬁcation
      request for mortgage loans subject to a payment deferral. Processing a Payment
      Deferral for a Mortgage Loan with Mortgage Insurance The servicer must see F-2-06,
      Mortgage Insurer Delegations for Workout Options for the list of conventional
      mortgage insurers from which Fannie Mae has obtained delegation of authority
      on behalf of all servicers, which allows the servicer to process a payment deferral
      without obtaining separate mortgage insurer approval at the company or loan
      level. Handling Fees and Late Charges in Connection with a Payment Deferral
      The servicer must not charge the borrower administrative fees. The servicer
      must waive all late charges, penalties, stop payment fees, or similar charges
      upon completing a payment deferral. The servicer must follow the procedures
      in Reimbursement for Expenses Associated with Workout Options in Published May
      13, 2026 337 F-1-05, Expense Reimbursement for advancing funds and requesting
      reimbursement. Evaluating Mortgage Loans Subject to a Temporary Interest Rate
      Buydown Plan for a Payment Deferral The servicer must not apply buydown funds
      to reduce any delinquent amounts in connection with a payment deferral, unless
      required by the terms of the buydown agreement. When evaluating a mortgage loan
      subject to a temporary interest rate buydown plan for a payment deferral, the
      servicer must conﬁrm the borrower''s eligibility per the requirements in Determining
      Eligibility for a Payment Deferral in this topic, considering the full monthly
      contractual payment per the mortgage note. If the borrower is not eligible for
      a payment deferral, the servicer must continue to evaluate the borrower for
      a workout option in accordance with F-2-10, Fannie Mae’s Workout Hierarchy .
      If as of the date the ﬁrst payment is due following the completion of the payment
      deferral the mortgage loan... Then the servicer must require the borrower to...
      remains subject to a temporary interest rate buydown plan resume making payments
      as speciﬁed in and subject to the buydown agreement until the buydown term ends.
      does not remain subject to a temporary interest rate buydown plan make their
      full contractual monthly payment per the mortgage note. The servicer must make
      the appropriate changes to the Payment Deferral Agreement, or equivalent, as
      necessary to disclose the monthly P&I payment due during and upon expiration
      of the buydown term. See Completing a Payment Deferral within this topic for
      additional information on the Payment Deferral Agreement. Once the buydown term
      ends, the servicer must return any funds it has held in association with a temporary
      interest rate buydown plan to Fannie Mae in accordance with C-3-01, Responsibilities
      Related to Remitting P&I Funds to Fannie Mae, subject to the terms of the buydown
      agreement. Recent Related Announcements The table below provides references
      to recently issued Announcements that are related to this topic. Announcements
      Issue Date Announcement SVC-2025-05 August 13, 2025 Published May 13, 2026 338
      Announcements Issue Date Announcement SVC-2023-05 October 11, 2023 Announcement
      SVC-2023-03 May 10, 2023 Announcement SVC-2020-07 December 9, 2020'
  judgment: false
