source:
  type: guide
  id: fnma-svc-e-2.2-01
  authority: Fannie Mae Servicing Guide E-2.2-01 — Managing Chapter 7 Bankruptcies
  description: Fannie Mae Servicing Guide E-2.2-01 — Managing Chapter 7 Bankruptcies.
  coverage_tier: operative
obligations:
- id: fnma-svc-e-2.2-01-full
  canonical_id: fnma-svc-e-2.2-01-full
  section: Fannie Mae Servicing Guide E-2.2-01 — Managing Chapter 7 Bankruptcies
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide E-2.2-01 — Managing Chapter 7 Bankruptcies
    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-2.2-01, Managing Chapter 7 Bankruptcies (11/12/2014) Introduction
      This topic contains the following: Overview Managing Chapter 7 Bankruptcies
      for Current Mortgage Loans Managing Chapter 7 Bankruptcies for Delinquent Mortgage
      Loans Published May 13, 2026 423 Overview Case completion for a Chapter 7 bankruptcy
      proceeding is deﬁned as the termination of the automatic stay, the case being
      dismissed or closed, or when the borrower receives a discharge and the trustee
      abandons all interest in the secured property. Managing Chapter 7 Bankruptcies
      for Current Mortgage Loans The servicer must closely monitor the payment status
      of the mortgage loan and, if it becomes 60 days delinquent, refer it to a law
      ﬁrm within two weeks of the 60th day of delinquency. The servicer must also
      closely monitor the case and take appropriate actions to ensure that no pleadings
      are ﬁled or other actions taken that would adversely aﬀect Fannie Mae’s security
      interest in the property. The time frame for completing a Chapter 7 bankruptcy
      case for a mortgage loan that was current (or less than 60 days delinquent)
      when the borrower ﬁled bankruptcy is two months and two weeks from the 60th
      day of delinquency. Managing Chapter 7 Bankruptcies for Delinquent Mortgage
      Loans The servicer must abide by the requirements shown in the following table
      when servicing a delinquent mortgage loan involved in a Chapter 7 bankruptcy
      proceeding. ✓ The servicer must… Determine the borrower’s intentions for the
      security property as soon as possible. Obtain either payments or relief from
      the bankruptcy stay in a timely manner. If the borrower intends to surrender
      the security property, the servicer must attempt to obtain relief from the automatic
      stay by requesting a court order as expeditiously as possible. If the borrower
      intends to retain possession of the security property, the servicer must pursue
      a workout option. Once the automatic stay is terminated, or the case is dismissed
      or discharged with a trustee abandonment of the property, the servicer must
      immediately complete all of the actions described in the following table. ✓
      The servicer must… Send any required breach letter to the borrower. Refer the
      mortgage loan to a law ﬁrm to initiate (or resume) foreclosure. Published May
      13, 2026 424 ✓ The servicer must… Consider the possibility of arranging a workout
      option. The time frame for completing a Chapter 7 bankruptcy case for a mortgage
      loan that was 60 or more days delinquent (or in foreclosure) when the borrower
      ﬁled bankruptcy is two months and two weeks from the date of the bankruptcy
      ﬁling. Recent Related Announcements There are no recently issued Announcements
      related to this topic.'
  judgment: false
