source:
  type: guide
  id: fnma-svc-d2-3.1-01
  authority: Fannie Mae Servicing Guide D2-3.1-01 — Determining the Appropriate Workout
    Option
  description: Fannie Mae Servicing Guide D2-3.1-01 — Determining the Appropriate
    Workout Option.
  coverage_tier: operative
obligations:
- id: fnma-svc-d2-3.1-01-full
  canonical_id: fnma-svc-d2-3.1-01-full
  section: Fannie Mae Servicing Guide D2-3.1-01 — Determining the Appropriate Workout
    Option
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide D2-3.1-01 — Determining the Appropriate
      Workout Option
    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: 'D2-3.1-01, Determining the Appropriate Workout Option (11/12/2014)
      Introduction This topic contains the following: Evaluating the Mortgage Loan
      for Workout Options Evaluating a Borrower for Workout Options Considering Reﬁnancing
      a First and Second Lien Mortgage Loan Evaluating the Mortgage Loan for Workout
      Options The servicer must be familiar with the terms and eligibility requirements
      of each of the workout options available to help borrowers when the mortgage
      loan becomes delinquent or when the borrower’s monthly payment is in imminent
      default, as they may diﬀer depending on whether the mortgage loan is in an MBS
      pool, including PFP mortgage loans, or in Fannie Mae’s portfolio. The servicer
      must consider Fannie Mae’s workout options for the following conventional mortgage
      loans: those held in Fannie Mae’s portfolio, those purchased for Fannie Mae’s
      portfolio but that are subsequently sold to back an MBS pool PFP, and those
      originally delivered as part of an MBS pool serviced under the special servicing
      option or shared- risk special servicing option MBS mortgage loans for which
      Fannie Mae markets the acquired property. When the servicer uses Fannie Mae’s
      workout options for any mortgage loan other than those described Published May
      13, 2026 316 previously, Fannie Mae will not be responsible for any losses or
      expenses the servicer incurs and will not pay the incentive fees it usually
      pays for certain workout options. For government mortgage loans, the servicer
      must oﬀer the speciﬁc workout options that the mortgage insurer or guarantor
      makes available. The servicer must see the F-2-02, Incentive Fees for Workout
      Options for information on the applicable incentive fees associated with a workout
      option, and must follow the procedures in F-1-18, Processing a Workout Incentive
      Fee for processing incentive fees. If the eligibility criteria for a particular
      workout option are not satisﬁed but the servicer determines that there are acceptable
      mitigating circumstances, it must submit a request to Fannie Mae for review.
      Evaluating a Borrower for Workout Options See F-2-10, Fannie Mae’s Workout Hierarchy
      for evaluating a borrower for workout options. The servicer must analyze each
      case carefully before determining which workout option is most appropriate.
      To ensure that the ﬁnal workout option agreed upon is realistic, the servicer
      must consider the borrower’s ﬁnancial condition, except as otherwise authorized
      under this Guide. See D2-2-05, Receiving a Borrower Response Package for information
      on evaluating the borrower for workout options. The following table provides
      the requirements if the servicer has information that the borrower should be
      evaluated for workout options. ✓ The servicer must... Explain to the borrower
      Fannie Mae’s workout options and the borrower’s responsibilities under each.
      Obtain a complete BRP, unless stated otherwise in this Guide, to determine the
      most appropriate workout option. See D2-2-04, Sending a Borrower a Solicitation
      Package for a Workout Option and D2-2-05, Receiving a Borrower Response Package
      for the requirements for sending a Borrower Solicitation Package and evaluating
      the borrower for workout options. Stress the consequences of not meeting the
      terms of a workout option. The servicer must not require the borrower to make
      an upfront cash contribution to be considered for a workout option. Considering
      Reﬁnancing a First and Second Lien Mortgage Loan When Fannie Mae’s mortgage
      loan is in the second lien position and both the ﬁrst and second lien mortgage
      loans need to be modiﬁed, it may be more appropriate to consider consolidating
      and reﬁnancing the total debt. Published May 13, 2026 317 The servicer must
      submit to Fannie Mae for prior approval any proposals to consolidate and reﬁnance
      the existing debt in lieu of modifying the outstanding mortgage loans. Recent
      Related Announcements There are no recently issued Announcements related to
      this topic.'
  judgment: false
