source:
  type: guide
  id: fnma-svc-d2-3.1-04
  authority: Fannie Mae Servicing Guide D2-3.1-04 — Oﬀering a Workout Option When
    Also Servicing a Subordinate Lien Mortgage Loan
  description: Fannie Mae Servicing Guide D2-3.1-04 — Oﬀering a Workout Option When
    Also Servicing a Subordinate Lien Mortgage Loan.
  coverage_tier: operative
obligations:
- id: fnma-svc-d2-3.1-04-full
  canonical_id: fnma-svc-d2-3.1-04-full
  section: Fannie Mae Servicing Guide D2-3.1-04 — Oﬀering a Workout Option When Also
    Servicing a Subordinate Lien Mortgage Loan
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide D2-3.1-04 — Oﬀering a Workout Option When
      Also Servicing a Subordinate Lien Mortgage Loan
    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: D2-3.1-04, Oﬀering a Workout Option When Also Servicing a Subordinate
      Lien Mortgage Loan (09/09/2020) Introduction This topic contains information
      on oﬀering a workout option when also servicing a subordinate lien mortgage
      loan. Oﬀering a Workout Option When Also Servicing a Subordinate Lien Mortgage
      Loan Oﬀering a Workout Option When Also Servicing a Subordinate Lien Mortgage
      Loan If the servicer of a ﬁrst lien mortgage loan owned or securitized by Fannie
      Mae also services a subordinate lien mortgage loan for the same property, either
      for themselves or another investor, and the servicer determines that the borrower
      is eligible for a workout option relating to the ﬁrst lien mortgage loan, the
      oﬀer to accept the workout option must not be contingent upon the borrower making
      payments on or bringing current the subordinate lien mortgage loan. Fannie Mae
      recognizes that it may be necessary for the servicer to make a payment to a
      subordinate lienholder in certain instances. The servicer must obtain Fannie
      Mae’s prior written approval to make payment to a subordinate lienholder when
      the servicer determines that a payment deferral or a mortgage loan modiﬁcation
      is the appropriate workout option for a borrower. See Allowable Payments to
      Subordinate Lienholders in D2-3.3-01, Fannie Mae Short Sale and in D2-3.3-02,
      Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure) for additional information
      on payments to subordinate lienholders for short sales and Mortgage Releases.
      Recent Related Announcements Published May 13, 2026 320 The table below provides
      references to recently issued Announcements that are related to this topic.
      Announcements Issue Date Announcement SVC-2020-04 September 9, 2020
  judgment: false
