source:
  type: guide
  id: fnma-svc-d2-3.1-05
  authority: Fannie Mae Servicing Guide D2-3.1-05 — Interacting with Mortgage Assistance
    Fund Program Providers
  description: Fannie Mae Servicing Guide D2-3.1-05 — Interacting with Mortgage Assistance
    Fund Program Providers.
  coverage_tier: operative
obligations:
- id: fnma-svc-d2-3.1-05-full
  canonical_id: fnma-svc-d2-3.1-05-full
  section: Fannie Mae Servicing Guide D2-3.1-05 — Interacting with Mortgage Assistance
    Fund Program Providers
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide D2-3.1-05 — Interacting with Mortgage Assistance
      Fund Program Providers
    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: 'D2-3.1-05, Interacting with Mortgage Assistance Fund Program
      Providers (10/12/2022) The following table lists the servicer’s responsibilities
      with regard to handling funds provided on behalf of a borrower from a state
      or local government mortgage assistance fund program, such as those administered
      by an HFA or other designee. ✓ The servicer must… Accept such funds on behalf
      of a borrower (i.e., treat as borrower-paid funds) provided that application
      of such funds does not impair Fannie Mae’s interests in the mortgage loan. Apply
      funds in accordance with • C-1.1-01, Servicer Responsibilities for Processing
      Mortgage Loan Payments • C-1.1-02, Processing Payment Shortages or Funds Received
      When a Mortgage Loan Modiﬁcation Is Pending • C-1.2-01, Processing Additional
      Principal Payments Provide the necessary mortgage loan information to the mortgage
      assistance fund program provider and the eligible borrower to enable their participation
      in the program. Not deny or delay consideration of a borrower for a workout
      option pending approval for mortgage assistance. Cancel an active forbearance
      plan, an active repayment plan, or a payment deferral that has not yet been
      completed if the mortgage loan is fully reinstated as a result of mortgage assistance
      funds. Published May 13, 2026 321 Contact Fannie Mae''s SFCPM Division (see
      F-4-02, List of Contacts) immediately if application of mortgage assistance
      funds fully reinstate the mortgage loan during an active mortgage loan modiﬁcation
      Trial Period Plan to obtain Fannie Mae''s assistance with appropriately completing
      the mortgage loan modiﬁcation, including satisfying any conditions related to
      MBS trust requirements. Evaluate the borrower for a retention workout option
      in accordance with Chapter D2-3, Fannie Mae''s Home Retention and Liquidation
      Workout Options if the borrower requests additional assistance after the mortgage
      loan has been fully reinstated. Note: If the borrower fails to qualify for a
      conventional mortgage loan modiﬁcation due to the imminent default evaluation
      (see Evaluating a Borrower for Imminent Default for Conventional Mortgage Loan
      Modiﬁcation Eligibility in D2-1-01, Determining if the Borrower’s Mortgage Payment
      is in Imminent Default for more information), the servicer must submit the case
      to Fannie Mae for review through Fannie Mae’s servicing solutions system. Attempt
      to contact the borrower and achieve QRPC in accordance with Chapter D2-2, Requirements
      for Contacting a Borrower to resolve the remaining delinquency if the funds
      do not fully reinstate the borrower’s mortgage loan. Refer to the following
      topics with regard to handling foreclosure activities: • E-3.2-07, Impact of
      Engagement with a Mortgage Assistance Fund Program Provider • E-3.2-08, Processing
      Reinstatements During Foreclosure • E-3.4-01, Suspending Foreclosure Proceedings
      for Workout Negotiations Be able to • readily identify on its servicing system
      any borrower who receives mortgage assistance from a mortgage assistance fund
      program provider, and • provide this information to Fannie Mae upon request.
      Recent Related Announcements The table below provides references to recently
      issued Announcements that are related to this topic. Announcements Issue Date
      Announcement SVC-2022-07 October 12, 2022 Announcement SVC-2021-04 July 14,
      2021 Published May 13, 2026 322 Announcements Issue Date Announcement SVC-2020-04
      September 9, 2020'
  judgment: false
