source:
  type: regulation
  id: fnma-svc-d2-3-1
  authority: "FNMA Servicing Guide D2-3.1 — Determining the Appropriate Workout Option / Conditions for MBS Pool Modification / Group Home Servicing"
  description: 'FNMA Servicing Guide D2-3.1-02 and D2-3.1-03 govern operational

    rules for workout options on MBS-pool mortgage loans and group

    home mortgage loans: no-modify-while-in-MBS-pool rule, 4-

    consecutive-month delinquency precondition for special-servicing

    MBS removal, Trial Period Plan payment precondition for

    modification implementation, modification-effective-only-after-

    MBS-removal rule, and group-home foreclosure-prevention duty

    requiring work with the funding agency. Fills FNMA Servicing D2-

    3.1 chapter gap.

    '
obligations:
- id: fnma-svc-d2-3-1-02-no-modify-while-in-mbs-pool
  canonical_id: fnma-svc-d2-3-1-02-no-modify-while-in-mbs-pool
  section: "FNMA Servicing Guide D2-3.1-02 — No mortgage modification while loan is in an MBS pool"
  description: '[LENDER] (servicer) shall NOT modify a mortgage loan while it is

    in an MBS pool (including PFP mortgage loans). Performing MBS

    mortgage loans are ineligible for purchase from the related MBS

    pool for the purpose of modifying the mortgage loan term,

    interest rate, UPB, or other major characteristics. The MBS-

    structural constraint prevents pool-level investor interest

    dilution via loan-level modifications.

    '
  type: refrain
  audit_function:
  audit_question: For every FNMA-MBS mortgage loan modification [LENDER] executed, can [LENDER] evidence that the loan was REMOVED from the MBS pool before the modification was executed?
  workflow_phase: loss_mitigation
  owner_role: loss_mitigation_specialist
  secondary_owner_role: investor_reporting_manager
  cadence: per-mbs-modification
  consequence: Modification of an in-pool MBS mortgage loan is a foundational MBS-structural breach; may trigger pool-level investor claims and FNMA enforcement.
  tags:
  - round-d
  - regulator-direct
  - fnma
  - servicer-operations
  - mbs-pool
  - no-modify-in-pool
  - loan-modification
  - promoted
  primary_source:
    tier: 1
    authority: "FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification"
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: f662f911b3ddaf1d
    fetched_at: '2026-05-25T14:09:40Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'The servicer must not modify a mortgage loan while it is in an MBS pool

      '
    drafter_attestation: 'Copied verbatim from snapshot f662f911b3ddaf1d. D2-3.1-02 no-modify-

      while-in-MBS-pool operative restriction. "(including PFP mortgage

      loans)" parenthetical and Performing-MBS-loan-ineligibility

      sentence paraphrased in description.

      '
  promoted_at: '2026-05-25T20:13:09+00:00'
  promoted_from: fnma-svc-d2-3-1-roundd-v1.yaml
  program_review: Does the program ensure no MBS loan is modified while in the pool — performing MBS loans are ineligible for pool purchase to modify term/rate/UPB/major characteristics?
  file_review: For MBS-loan modifications, confirm the loan was removed from the MBS pool before the modification was executed.
  judgment: false
  feeds:
  - fnma-svc-d2-3-1-02-modification-not-effective-while-in-pool
- id: fnma-svc-d2-3-1-02-mbs-removal-4-consecutive-month-delinquency
  canonical_id: fnma-svc-d2-3-1-02-mbs-removal-4-consecutive-month-delinquency
  section: "FNMA Servicing Guide D2-3.1-02 — 4-consecutive-month delinquency precondition for special-servicing MBS removal"
  description: '[LENDER] (servicer) may remove a special-servicing-option

    mortgage loan from its MBS pool for modification only if the

    mortgage loan has been in a continuous state of delinquency for

    four consecutive monthly payment due dates (or at least eight

    consecutive payment due dates in the case of a biweekly mortgage

    loan) without a full cure of the delinquency during that period.

    The bright-line delinquency-duration threshold prevents premature

    pool removal.

    '
  type: do
  audit_question: For every special-servicing-option MBS loan [LENDER] removed from its pool for modification, can [LENDER] evidence (a) 4 consecutive monthly delinquency due dates (or 8 biweekly) and (b) no full cure during that period?
  workflow_phase: loss_mitigation
  owner_role: investor_reporting_manager
  secondary_owner_role: loss_mitigation_specialist
  cadence: per-mbs-removal
  consequence: Pool removal without the 4-consecutive-delinquency precondition is a FNMA Servicing Guide breach.
  tags:
  - round-d
  - regulator-direct
  - fnma
  - servicer-operations
  - mbs-pool
  - special-servicing-option
  - 4-month-delinquency-threshold
  - promoted
  primary_source:
    tier: 1
    authority: "FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification"
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: f662f911b3ddaf1d
    fetched_at: '2026-05-25T14:09:40Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'if a special servicing option mortgage loan has been in a continuous state of delinquency for four consecutive monthly payment due dates

      '
    drafter_attestation: 'Copied verbatim from snapshot f662f911b3ddaf1d. D2-3.1-02 4-

      consecutive-month-delinquency operative precondition. Biweekly-

      loan-8-consecutive-due-dates carve-out and no-cure tail paraphrased

      in description.

      '
  promoted_at: '2026-05-25T20:13:09+00:00'
  promoted_from: fnma-svc-d2-3-1-roundd-v1.yaml
  program_review: Does the program ensure a special-servicing-option MBS loan is removed for modification only after four consecutive monthly delinquent due dates (or eight consecutive biweekly) without a full cure during that period?
  file_review: For special-servicing MBS removals, confirm the 4-consecutive-monthly (or 8-biweekly) delinquency and no full cure during the period.
  judgment: false
- id: fnma-svc-d2-3-1-02-trial-period-payments-precondition
  canonical_id: fnma-svc-d2-3-1-02-trial-period-payments-precondition
  section: "FNMA Servicing Guide D2-3.1-02 — Modification not implemented if Trial Period Plan payments not made"
  description: '[LENDER] (servicer) shall ensure that the mortgage loan

    modification is NOT implemented if the required Trial Period

    Plan payments are not made in accordance with the applicable

    mortgage loan modification workout option, because the

    preconditions to make the modification effective have not been

    satisfied. The Trial Period Plan payment record is the operative

    gate for permanent modification.

    '
  type: refrain
  audit_question: For every mortgage loan modification [LENDER] implemented, can [LENDER] evidence that all required Trial Period Plan payments were made per the workout-option terms before modification documents were executed?
  workflow_phase: loss_mitigation
  owner_role: loss_mitigation_specialist
  secondary_owner_role: compliance_officer
  cadence: per-modification
  consequence: Implementing a modification on a borrower who did not complete Trial Period Plan payments is a FNMA Servicing Guide breach.
  tags:
  - round-d
  - regulator-direct
  - fnma
  - servicer-operations
  - trial-period-plan
  - modification-precondition
  - promoted
  primary_source:
    tier: 1
    authority: "FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification"
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: f662f911b3ddaf1d
    fetched_at: '2026-05-25T14:09:40Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: "The servicer must ensure that the mortgage loan modiﬁcation is not implemented if the required Trial Period Plan payments are not made\n"
    drafter_attestation: "Copied verbatim from snapshot f662f911b3ddaf1d. D2-3.1-02 Trial-\nPeriod-payments-precondition operative requirement. Quote uses\nU+FB01 fi-ligature in \"modiﬁcation\" matching PDF extraction. The\n\"preconditions to make the modification eﬀective have not been\nsatisﬁed\" tail paraphrased in description.\n"
  promoted_at: '2026-05-25T20:13:09+00:00'
  promoted_from: fnma-svc-d2-3-1-roundd-v1.yaml
  program_review: Does the program ensure a modification is not implemented unless the required Trial Period Plan payments were made per the workout-option terms?
  file_review: For implemented modifications, confirm all required Trial Period Plan payments were made before modification documents were executed.
  judgment: false
- id: fnma-svc-d2-3-1-02-modification-not-effective-while-in-pool
  canonical_id: fnma-svc-d2-3-1-02-modification-not-effective-while-in-pool
  section: "FNMA Servicing Guide D2-3.1-02 — Mortgage loan modification not effective while in MBS pool"
  description: '[LENDER] (servicer) shall ensure that a mortgage loan

    modification does NOT become effective while it remains in an

    MBS pool. The modification agreement must be executed after the

    mortgage loan has been removed from any MBS pool and reclassified

    as a Fannie Mae portfolio mortgage loan, and must reflect the

    actual date of [LENDER]''s execution.

    '
  type: refrain
  audit_question: For every mortgage loan modification, can [LENDER] evidence (a) the loan was removed from any MBS pool and reclassified as a portfolio loan BEFORE the modification agreement was executed, and (b) the agreement reflects the actual execution date?
  workflow_phase: loss_mitigation
  owner_role: investor_reporting_manager
  secondary_owner_role: loss_mitigation_specialist
  cadence: per-modification
  consequence: Effecting a modification while loan is still in an MBS pool is a foundational MBS-structural breach.
  tags:
  - round-d
  - regulator-direct
  - fnma
  - servicer-operations
  - mbs-pool
  - modification-effective-date
  - portfolio-reclassification
  - promoted
  primary_source:
    tier: 1
    authority: "FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification"
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: f662f911b3ddaf1d
    fetched_at: '2026-05-25T14:09:40Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: "The servicer must ensure that a mortgage loan modiﬁcation does not become eﬀective while it remains in an MBS pool.\n"
    drafter_attestation: "Copied verbatim from snapshot f662f911b3ddaf1d. D2-3.1-02\nmodification-not-effective-while-in-pool operative restriction.\nQuote uses U+FB01 fi-ligature in \"modiﬁcation\" and U+FB00 ff-\nligature in \"eﬀective\" matching PDF extraction. The post-removal/\nreclassification execution rule paraphrased in description.\n"
  promoted_at: '2026-05-25T20:13:09+00:00'
  promoted_from: fnma-svc-d2-3-1-roundd-v1.yaml
  program_review: Does the program ensure a modification does not become effective while the loan is in an MBS pool — the agreement is executed after pool removal/reclassification to portfolio and reflects the actual execution date?
  file_review: For modifications, confirm the loan was removed from any MBS pool and reclassified as portfolio before the agreement was executed, and that the agreement reflects the actual execution date.
  judgment: false
- id: fnma-svc-d2-3-1-03-group-home-work-with-funding-agency
  canonical_id: fnma-svc-d2-3-1-03-group-home-work-with-funding-agency
  section: "FNMA Servicing Guide D2-3.1-03 — Group home delinquency: work with funding agency to resolve"
  description: 'For mortgage loans where the property securing the mortgage loan

    serves as a group home, [LENDER] (servicer) shall work with the

    borrower AND the funding agency to resolve a serious delinquency.

    [LENDER] shall devote additional resources to foreclosure

    prevention efforts when the group home is still occupied by

    disabled tenants and, if appropriate, delay the initiation of

    foreclosure. The group-home rule recognizes the vulnerable-

    population housing-protection context.

    '
  type: do
  audit_question: For every group-home mortgage loan delinquency, can [LENDER] evidence (a) outreach to BOTH the borrower and the funding agency, (b) additional foreclosure-prevention resources devoted, and (c) any foreclosure-initiation delays when disabled tenants still occupy?
  workflow_phase: loss_mitigation
  owner_role: loss_mitigation_specialist
  secondary_owner_role: compliance_officer
  cadence: per-group-home-delinquency
  consequence: Standard-track foreclosure on a group home with disabled occupants creates fair-housing and FNMA-program-specific exposure.
  tags:
  - round-d
  - regulator-direct
  - fnma
  - servicer-operations
  - group-home
  - vulnerable-occupant
  - foreclosure-prevention
  - promoted
  primary_source:
    tier: 1
    authority: "FNMA Servicing Guide D2-3.1-03 — Working with a Borrower that has a Group Home Mortgage Loan"
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: f662f911b3ddaf1d
    fetched_at: '2026-05-25T14:09:40Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'must work with the borrower and the funding agency to resolve a serious delinquency

      '
    drafter_attestation: 'Copied verbatim from snapshot f662f911b3ddaf1d. D2-3.1-03 group-

      home-work-with-funding-agency operative requirement. The

      additional-resources / foreclosure-delay tail paraphrased in

      description.

      '
  promoted_at: '2026-05-25T20:13:09+00:00'
  promoted_from: fnma-svc-d2-3-1-roundd-v1.yaml
  program_review: Does the program account for group-home loans — working with both the borrower AND the funding agency on serious delinquency, devoting additional foreclosure-prevention resources, and delaying foreclosure where appropriate while disabled tenants occupy?
  file_review: For group-home delinquencies, confirm outreach to borrower and funding agency, additional foreclosure-prevention resources, and any foreclosure-initiation delay while disabled tenants occupy. The compliance person judges whether the heightened effort was adequate.
  judgment: true
_promotion_history:
- promoted_at: '2026-05-25T20:13:09+00:00'
  candidate_path: obligations\_remediation\round-d-investor-guides\fnma-svc-d2-3-1-roundd-v1.yaml
  candidates_promoted: 5
  candidates_skipped_existing: 0
