source:
  type: guide
  id: fnma-svc-e-3.2-08
  authority: Fannie Mae Servicing Guide E-3.2-08 — Processing Reinstatements During
    Foreclosure
  description: Fannie Mae Servicing Guide E-3.2-08 — Processing Reinstatements During
    Foreclosure.
  coverage_tier: operative
obligations:
- id: fnma-svc-e-3.2-08-full
  canonical_id: fnma-svc-e-3.2-08-full
  section: Fannie Mae Servicing Guide E-3.2-08 — Processing Reinstatements During
    Foreclosure
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide E-3.2-08 — Processing Reinstatements During
      Foreclosure
    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: 'E-3.2-08, Processing Reinstatements During Foreclosure (08/13/2025)
      Introduction This topic contains the following: Accepting a Full Reinstatement
      During Foreclosure Accepting a Partial Reinstatement During Foreclosure Servicer
      Requirements After the Mortgage Loan is Partially or Fully Reinstated During
      Foreclosure Accepting a Full Reinstatement During Foreclosure The servicer must
      accept a full reinstatement of a ﬁrst lien mortgage loan even if foreclosure
      proceedings have already begun. This is also true for a second lien mortgage
      loan as long as the ﬁrst lien mortgage loan is not delinquent or provided the
      ﬁrst lien mortgage loan servicer has agreed to arrangements for curing the delinquency.
      The following table provides the deﬁnition of a full reinstatement. ✓ A full
      reinstatement must include payment of… All delinquent mortgage loan payments,
      bearing interest at the rate applicable on the date they became due. Late charges
      on the delinquent payments. Any funds the servicer advanced for protection of
      the security or to pay taxes, insurance premiums, etc. Published May 13, 2026
      450 ✓ A full reinstatement must include payment of… The costs of performing
      the preforeclosure property inspection required by Fannie Mae, FHA, or the VA
      (as applicable), and if permitted under the terms of the security instrument.
      All expenses, including attorney fees; that were actually incurred in connection
      with the foreclosure proceedings that are permitted under the terms of the note,
      security instrument, and applicable law. See also E-5-05, Reimbursing Law Firms/Reimbursement
      of Uncollected Fees, Costs or Advances for additional information. The servicer
      must not apply buydown funds to reduce any delinquent amounts in connection
      with a reinstatement, unless required by the terms of the buydown agreement.
      Upon reinstatement of a mortgage loan that is subject to a temporary interest
      rate buydown plan, the borrower must resume their payment amount as speciﬁed
      in and subject to the terms of the buydown agreement. Such payments will continue
      until the buydown term has expired, at which time the borrower must begin making
      their full monthly contractual payment per the mortgage note. For application
      of funds from a mortgage assistance fund program, see D2-3.1-05, Interacting
      with Mortgage Assistance Fund Program Providers. Accepting a Partial Reinstatement
      During Foreclosure The servicer is authorized to accept a borrower’s request
      for a partial reinstatement if the borrower would qualify for a workout option
      after application of the partial reinstatement funds. See D2-3, Fannie Mae’s
      Home Retention and Liquidation Workout Options for additional information on
      available workout options. See also C-3-01, Responsibilities Related to Remitting
      P&I Funds to Fannie Mae for additional information. The servicer must follow
      the procedures in F-1-20, Remitting and Accounting to Fannie Mae. If the application
      of partial reinstatement funds from a mortgage assistance fund program provider
      would result in a restart or delay of the foreclosure proceeding, the servicer
      is authorized to decline acceptance of the funds, (see D2-3.1-05, Interacting
      with Mortgage Assistance Fund Program Providers for additional information).
      The servicer must not apply buydown funds to reduce any delinquent amounts in
      connection with a reinstatement, unless required by the terms of the buydown
      agreement. Upon reinstatement of a mortgage loan that is subject to a temporary
      interest rate buydown plan, the borrower must resume their payment amount as
      speciﬁed in and subject to the terms of the buydown agreement. Such payments
      will continue until the buydown term has expired, at which time the borrower
      must begin making their full monthly contractual payment per the mortgage note.
      Servicer Requirements After the Mortgage Loan is Partially or Fully Reinstated
      Published May 13, 2026 451 During Foreclosure After a mortgage loan is either
      partially or fully reinstated, the servicer must return the original mortgage
      note to the document custodian if the servicer took physical possession of the
      original note for the foreclosure action. The servicer must return the note
      to the document custodian by submitting a Request for Release/Return of Documents
      (Form 2009). The servicer also must follow the procedures in F-1-21, Reporting
      a Delinquent Mortgage Loan via Fannie Mae’s Servicing Solutions System, to report
      the reinstatement to Fannie Mae. 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 Announcement
      SVC-2021-04 July 14, 2021 Announcement SVC-2020-01 February 12, 2020'
  judgment: false
