source:
  type: guide
  id: fnma-svc-d2-1-01
  authority: Fannie Mae Servicing Guide D2-1-01 — Determining if the Borrower's Mortgage
    Payment is in Imminent Default
  description: Fannie Mae Servicing Guide D2-1-01 — Determining if the Borrower's
    Mortgage Payment is in Imminent Default.
  coverage_tier: operative
obligations:
- id: fnma-svc-d2-1-01-full
  canonical_id: fnma-svc-d2-1-01-full
  section: Fannie Mae Servicing Guide D2-1-01 — Determining if the Borrower's Mortgage
    Payment is in Imminent Default
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide D2-1-01 — Determining if the Borrower's
      Mortgage Payment is in Imminent Default
    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: 'D2-1-01, Determining if the Borrower’s Mortgage Payment is in
      Imminent Default (12/12/2018) Introduction This topic contains the following:
      Evaluating a Borrower Facing Imminent Default Evaluating a Borrower for Imminent
      Default for Conventional Mortgage Loan Modiﬁcation Eligibility Evaluating a
      Borrower for Imminent Default for Fannie Mae Short Sale or Fannie Mae Mortgage
      Release Eligibility Evaluating a Borrower Facing Imminent Default The servicer
      must consider available workout options when the servicer is notiﬁed or otherwise
      becomes aware of events or factors that are expected to cause the borrower’s
      monthly payment to be in default within the next 90 days (“imminent default”).
      In determining whether a borrower’s monthly payment is in imminent default,
      the servicer must take the actions described in the following table. Published
      May 13, 2026 287 ✓ The servicer must... Evaluate the borrower’s ﬁnancial and
      hardship condition. See D2-2-05, Receiving a Borrower Response Package for information
      on evaluating the borrower for workout options when the borrower submits a complete
      BRP. Evaluate the condition of and the circumstances aﬀecting the property securing
      the mortgage loan by consulting with the borrower. The servicer must not solicit
      borrowers who are current or less than 30 days delinquent for a workout option.
      If the servicer determines that a borrower whose mortgage loan was less than
      60 days delinquent did not qualify for any workout options, and the borrower’s
      mortgage loan subsequently becomes 60 or more days delinquent, the servicer
      must continue its solicitation and collection eﬀorts with the borrower in accordance
      with D2-2, Requirements for Contacting a Borrower. Evaluating a Borrower for
      Imminent Default for Conventional Mortgage Loan Modiﬁcation Eligibility For
      a borrower’s monthly payment to be considered in imminent default for the purpose
      of determining eligibility for a conventional mortgage loan modiﬁcation, the
      borrower must satisfy the initial eligibility criteria, and either the credit
      or hardship eligibility criteria. The servicer must take the steps in the following
      table to perform the imminent default evaluation. Published May 13, 2026 288
      Step Servicer Action 1 Determine if all initial eligibility criteria are satisﬁed.
      Initial Eligibility Criteria The mortgage loan is current or less than 60 days
      delinquent as of the evaluation date. The property securing the mortgage loan
      is occupied as a principal residence by at least one borrower. The borrower
      submits a complete BRP (see D2-2-05, Receiving a Borrower Response Package for
      additional information). The borrower’s non-retirement cash reserves are less
      than $25,000 based on information provided in the Mortgage Assistance Application
      (Form 710), or equivalent. The borrower has a hardship as documented in accordance
      with Form 710, or equivalent. Note: An increased monthly P&I payment that has
      occurred as a result of an interest rate adjustment within the last 12 months
      for a previously modiﬁed mortgage loan with a step- rate feature is an acceptable
      hardship. Published May 13, 2026 289 Step Servicer Action 2 Determine if either
      the credit or hardship eligibility criteria is satisﬁed. Review Eligibility
      Criteria Credit A FICO credit score less than or equal to 620, and either •
      two or more 30-day delinquencies on the mortgage loan in the six months immediately
      preceding the month of the evaluation, or Note: The servicer must not consider
      a missed contractual payment that becomes 60 or more days delinquent as having
      two or more 30-day delinquencies in the six-month period immediately preceding
      the month of the evaluation. • a pre-modiﬁcation housing expense- to-income
      ratio greater than 40% calculated in accordance with the procedures in Calculating
      the Housing Expense-to-Income Ratio for Imminent Default for a Conventional
      Mortgage Loan Modiﬁcation in F-1-12, Preparing to Implement a Workout Option.
      Note: The FICO credit score must be no more than 90 days old as of the date
      of evaluation. If the servicer obtains multiple credit scores for a single borrower,
      it must select a representative credit score using the lower of two or the middle
      of three credit scores. If there are multiple borrowers, the servicer must determine
      the representative score for each borrower and use the lowest representative
      score as the credit score for the evaluation. Hardship The borrower has one
      of the following hardships as documented in accordance with Form 710, or equivalent:
      • death of a borrower or death of either the primary or secondary wage earner
      in the household; • long-term or permanent disability, or serious illness of
      a borrower, co- borrower, or dependent family member; • divorce or legal separation;
      • separation of borrowers unrelated by marriage, civil union, or similar domestic
      partnership under applicable law; or • an increased monthly P&I payment occurred
      as result of an interest rate adjustment within the last 12 months for a mortgage
      loan previously modiﬁed with a step-rate feature. Published May 13, 2026 290
      If the servicer requests Fannie Mae’s approval of a conventional mortgage loan
      modiﬁcation through Fannie Mae’s servicing solutions system and the mortgage
      loan is current (i.e., not delinquent or in default) and Fannie Mae declines
      the borrower’s request, the servicer must send an Adverse Action Notice (Form
      182) to the borrower within 30 days of receipt of Fannie Mae’s decision, unless
      the servicer oﬀers the borrower another retention workout option and the borrower
      accepts the counteroﬀer within the 30-day period. While use of Form 182 is optional,
      it reﬂects the minimum level of information the servicer must communicate and
      illustrates a level of speciﬁcity that complies with the requirements of this
      Guide. The following table provides requirements for the adverse action notice.
      ✓ The adverse action notice must include... A statement that Fannie Mae, as
      the owner of the mortgage loan, reviewed the mortgage loan modiﬁcation request.
      Fannie Mae’s contact address shown as: Midtown Center 1100 15th Street, NW Washington,
      DC, 20005 The reason Fannie Mae did not approve the request. The name and contact
      information of the credit reporting agency used to make the denial decision,
      if applicable. When requesting Fannie Mae’s approval for a mortgage loan modiﬁcation
      for a borrower facing imminent default, the servicer must either include the
      draft adverse action notice in its submission to Fannie Mae’s servicing solutions
      system, or certify it has a process to send the text pre-approved by Fannie
      Mae for every adverse action notice that is sent in accordance with the requirements
      of this Guide. See A4-2.1-06, Adverse Action Notiﬁcation Certiﬁcation for information
      on obtaining approval and certiﬁcation. Evaluating a Borrower for Imminent Default
      for Fannie Mae Short Sale or Fannie Mae Mortgage Release Eligibility For a borrower’s
      monthly payment to be considered in imminent default for the purpose of determining
      eligibility for a Fannie Mae Short Sale or a Fannie Mae Mortgage Release, the
      borrower must satisfy the initial eligibility criteria, and either the credit
      or hardship eligibility criteria. Published May 13, 2026 291 The servicer must
      take the steps in the following table to perform the imminent default evaluation,
      unless the borrower’s debt has been discharged pursuant to Chapter 7 of the
      U.S. bankruptcy code, in which case the servicer must evaluate the borrower
      for a Fannie Mae short sale in accordance with D2-3.3-01, Fannie Mae Short Sale
      or Fannie Mae Mortgage Release in accordance with D2-3.3-02, Fannie Mae Mortgage
      Release (Deed-in- Lieu of Foreclosure). Step Servicer Action 1 Determine if
      all initial eligibility criteria are satisﬁed. ? Initial Eligibility Criteria
      The mortgage loan is current or less than 60 days delinquent as of the evaluation
      date. The property securing the mortgage loan is occupied as a principal residence
      by at least one borrower. Note: If a servicemember receives a PCS order where
      the transfer or new employment location is greater than 50 miles one way from
      the property securing the mortgage loan, the property securing the mortgage
      loan must have been or currently be the servicemember’s principal residence.
      The borrower submits a complete BRP (see D2-2-05, Receiving a Borrower Response
      Package for additional information). The borrower’s non-retirement cash reserves
      are less than $25,000 based on information provided in the Mortgage Assistance
      Application (Form 710), or equivalent. Note: If a servicemember receives a PCS
      order where the transfer or new employment location is greater than 50 miles
      one way from the property securing the mortgage loan, and the property securing
      the mortgage loan was or currently is the servicemember’s principal residence,
      they are exempt from the non-retirement cash reserves requirement. The borrower
      has a hardship as documented in accordance with Form 710, or equivalent. Published
      May 13, 2026 292 Step Servicer Action 2 Determine if either the credit or hardship
      eligibility is satisﬁed. Review Eligibility Criteria Credit A FICO credit score
      less than or equal to 620, and either • two or more 30-day delinquencies on
      the mortgage loan in the six months immediately preceding the month of the evaluation,
      or Note: The servicer must not consider a missed contractual payment that becomes
      60 or more days delinquent as having two or more 30-day delinquencies in the
      six-month period immediately preceding the month of the evaluation. • a housing
      expense-to-income ratio greater than 40% calculated in accordance with the procedures
      in Calculating the Housing Expense-to-Income Ratio for Imminent Default for
      a Fannie Mae Short Sale or Fannie Mae Mortgage Release in F-1-12, Preparing
      to Implement a Workout Option. Note: The FICO credit score must be no more than
      90 days old as of the date of evaluation. If the servicer obtains multiple credit
      scores for a single borrower, it must select a representative credit score using
      the lower of two or the middle of three credit scores. If there are multiple
      borrowers, the servicer must determine the representative score for each borrower
      and use the lowest representative score as the credit score for the evaluation.
      Hardship The borrower has one of the following hardships as documented in accordance
      with Form 710, or equivalent: • death of a borrower or death of either the primary
      or secondary wage earner in the household; • long-term or permanent disability,
      or serious illness of a borrower, co-borrower, or dependent family member; •
      divorce or legal separation; • separation of borrowers unrelated by marriage,
      civil union, or similar domestic partnership under applicable law; or • distant
      employment transfer/relocation, including a PCS order, greater than 50 miles
      one way from the property securing the mortgage loan. Published May 13, 2026
      293 Recent Related Announcements There are no recently issued Announcements
      related to this topic. Chapter D2-2, Requirements for Contacting a Borrower
      Introduction This chapter contains information on requirements for contacting
      a borrower.'
  judgment: false
