Servicing Guide

Published September 18, 2018

What to Report for a Delinquent Mortgage Loan

The servicer must report delinquency status information to Fannie Mae through Fannie Mae’s servicing solutions system in accordance with D2-4-01, Reporting a Delinquent Mortgage Loan to Fannie Mae.

For all mortgage loans that are greater than 30 days delinquent, the servicer must advise Fannie Mae of the action it plans to take or has taken until the mortgage loan becomes current (or liquidated) by reporting

  • the appropriate delinquency status code that best describes the latest action the servicer has taken to cure a delinquency or, if that failed, to liquidate the mortgage loan. See Delinquency Status Code Hierarchy and Definitions for additional information;

    Note: The reporting of a specific delinquency status code does not relieve the servicer of the need to satisfy other requirements Fannie Mae has regarding providing its Fannie Mae Servicing Representative (see F-4-03, List of Contacts) with advance notice about a given action or requesting Fannie Mae’s prior approval before it takes a particular action;

  • the effective date of the delinquency status being reported, if applicable (e.g., the month in which mortgage loan payments first become subject to a forbearance or repayment plan or the month in which the borrower files a bankruptcy action, etc.);

  • the workout option program type code, if applicable;

  • the completion date of the delinquency status being reported, if applicable; and

  • the reason for delinquency.

    Note: Several different “reason for delinquency” codes could apply to an individual mortgage loan; however, the servicer must report the one that appears to be the primary reason for the borrower’s failure to make his or her monthly payments.

The data submitted must be accurate, complete, timely, and must agree with the servicer’s records. Fannie Mae relies on accurate reporting by a servicer to track compliance with timing requirements and restrictions.

The following table indicates what the servicer must report when the mortgage loan was reported to Fannie Mae as delinquent in the prior reporting cycle.

When a mortgage loan was reported in the prior reporting cycle and… Then the servicer...

none of delinquency status information has changed

must re-transmit the same delinquency status information that it previously reported for the mortgage loan.

the delinquency status information has changed

must report the new delinquency status information.

Note: The servicer must report the delinquency status code; the effective date and completion date of the delinquency status being reported, if applicable; and the “reason for delinquency” code even if only one of them has changed.

a delinquency status code no longer applies because the mortgage loan has been reinstated (and the servicer reported a current LPI date through Fannie Mae’s investor reporting system)

will no longer need to report delinquency status information to Fannie Mae for that mortgage loan.

a delinquency status code no longer applies because the mortgage loan has been liquidated (and the servicer reported a liquidation action code through Fannie Mae’s investor reporting system)

When to Report Delinquency Status Information

By the second business day of each month, the servicer must report delinquency status information as part of its next scheduled delinquency status report for any mortgage loan, including regular servicing option MBS mortgage loans, that was either

  • 30 or more days delinquent as of the last day of the preceding month; or

  • for which an action was taken to cure the delinquency (such as granting forbearance, agreeing to a mortgage loan modification, filing for bankruptcy, etc.) during the preceding month, even if the mortgage loan was less than 30 days delinquent.

How to Report Delinquent Status Information

The servicer is authorized to transmit delinquency status information to Fannie Mae through Fannie Mae’s servicing solutions system or via CPU-to-CPU. The record layout for the servicer’s delinquent mortgage loan file extract must be the same regardless of the transmission method it chooses. See Delinquency Status Code File Layout for additional information.

How to Correct Exceptions

On approximately the third calendar day of each month, Fannie Mae will provide the following reports related to invalid and illogical reporting of delinquency status and reason codes:

  • Delinquency Exception Summary Report-summarizes the types of exceptions for a particular servicer, and

  • Delinquency Exception Details Report-provides the loan level details for the various exceptions.

The following table outlines the actions that the servicer must take to reconcile any exceptions identified by Fannie Mae.

Step Servicer Action
1

Obtain and review the report.

2

Determine the appropriate corrections to resolve each exception.

3

By the 10th calendar day of the month in which the exception report was issued, make corrections through Fannie Mae’s servicing solutions system.

4

On the 11th calendar day of the month, receive from Fannie Mae

  • an updated final exception report, and

  • a summary of what was reported during the month.

5

Use the final exception reports to reconcile the information on its systems.

Delinquency Status Code File Layout

The record layout detailed in the following table must be used for the delinquent mortgage loan file extract.

# Data Element Position Format Required Field Definition
1 Servicer Number 1-9 9 N/ 9(9) Yes Fannie Mae-assigned servicer number.
2 Space 10 X(1) Yes
3 Fannie Mae Loan Number 11-20 10 AN / 9(10) Yes 10-digit unique Fannie Mae- assigned loan number.
4 Space 21 X(1) Yes
5 Delinquency Status Code 22-23 2 AN / X(2) Yes The latest action or stage of a specific action for a mortgage in each reporting cycle.
6 Space 24 X(1) Yes
7 Reason for Delinquency Code 25-27 3 AN / X(3) Yes Describes the circumstance that appears to be the primary contributing factor to the delinquency.
8 Space 28 X(1) Yes
9 Default Effective Date 29-36 8 N / 9(8) Required for codes 09, 12, 15, 17, 80, BF and AW. Date the delinquency status code becomes effective.
10 Space 37 X(1) Yes
11 Default Completion Date 38-45 8 N / 9(8) Required for codes 09, 12,15, 17 and BF. Date the delinquency status was completed.
12 Space 46 X(1) Yes
13 Forbearance Program Type Code 47 1 N / X(1) Required for reporting forbearance program type

Indicates what type of forbearance plan the borrower is on:

  • 0 = Forbearance

14 Space 48 X(1) Yes
15 Imminent Default Indicator 49 1 N / X(1) Required for reporting when the Forbearance Program Type Code is a value other than 0.

Indicates the loan has been placed in forbearance because the borrower has been determined to be in imminent default.

  • 1 = YES or

  • 0 = NO or Space (Empty)

16 Space 50 X(1) Yes
17 Forbearance Program Payment Amount 51 -61 11 N / 9(8).99 Required for reporting when the Forbearance Program Type Code is a value other than 0.

The forbearance program payment amount is the amount agreed to, not the actual amount received.

If the value is short of length, prefix with zeros and suffix with zeros after the decimal.

18 Space 62 X(1) Yes
19 Forbearance Program Payment Date 63 -70 8 AN / X(1) Required for reporting forbearance program payment date Date the forbearance payment was received during the last reporting month.
20 Space 71 X(1) Yes
21 Ninety Plus New Layout Indicator 72-75 4 AN / X(4) Required for reporting forbearance program

Enter 4 spaces.

22 Space 76 X(5) Yes

Delinquency Status Code Hierarchy and Definitions

Each of the delinquency status codes in the following tables can be applied to a given mortgage loan at any point in the delinquency process. The codes are not always mutually exclusive; however, the servicer must report only one code (that may change from month to month) based on Fannie Mae’s delinquency status code hierarchy for each delinquent mortgage loan in each reporting cycle.

When multiple delinquency status codes are applicable to an individual loan, the servicer must use the appropriate delinquency status code in the highest priority. Priority Level 1, Priority Level 2, and Priority Level 3 delinquency status codes are mutually exclusive, meaning only one delinquency status code within each priority level can apply during a reporting cycle. If the most appropriate delinquency status code is in a priority level in which the codes are not mutually exclusive, the servicer must determine the delinquency status code that best describes the latest action it has taken to cure the delinquency or to liquidate the mortgage loan.

The servicer must continue to report the appropriate delinquency status code based on the hierarchy and the effective date of the action taken until the delinquency has been resolved or the delinquency status action is complete.

Note: If the description does not provide a definition of the effective date, then the servicer must report the date the action was taken.

Priority Level 1
Codes for Approved Workout Options
Code Name Definition
BF Trial Modification

The borrower has been approved to participate in a mortgage loan modification that requires a Trial Period Plan, even if the borrower files bankruptcy. This code should remain until all scheduled Trial Period Plan payments have been received and the delinquency status code is changed to reflect the most appropriate status.

  • The Effective Date is the first day of the month in which the first Trial Period Plan payment is due.

  • The Completion Date is the last day of the month in which the Trial Period Plan has ended.

09 Forbearance

The servicer has authorized a temporary suspension of payments or has agreed to accept payments less than the borrower’s scheduled monthly payment for a specified period of time. This includes a mortgage loan that has received forbearance under an HFA program.

Note: When a mortgage loan is canceled from a forbearance payment plan because the borrower is proceeding with the HHF program, the servicer must continue to report the Delinquency Status Code 09 (Forbearance), to reflect the mortgage loan’s delinquent status.

17 Short Sale Approved/Offer Received

A contract or offer has been received for a short sale and Fannie Mae has approved the offer.

  • The Effective Date is the date on which the contract or offer is received.

  • The Completion Date is the anticipated closing date.

12 Repayment Plan

The servicer has an agreement with the borrower for the acceptance of regularly scheduled monthly payments plus an additional amount over a prescribed number of months to bring the mortgage loan current.

  • The Effective Date is the first scheduled monthly or biweekly payment due under the repayment plan.

  • The Completion Date is the last scheduled payment date.

27 Assumption

An assumption of the mortgage loan debt has been assumed by a third-party. In this scenario, a Trial Period Plan or mortgage loan modification has not been offered to the new borrower.

Note: If an assumption is completed with a modification, the servicer must report either the Trial Period Plan or Modification code.

28 Modification

The borrower has successfully completed all scheduled mortgage modification Trial Period Plan payments and the Loan Modification Agreement has been sent to the borrower. This code should remain until the loan has been converted to a permanent modification.

29 Charge-off

Fannie Mae has agreed that it is not in its best interests to pursue collection efforts or legal actions against the borrower because of a reduced value for the property, a low outstanding mortgage loan balance, or the presence of certain environmental hazards on the property.

32 Military Indulgence

The servicer has granted a delinquent servicemember a stay of foreclosure proceedings under a military indulgence or any similar applicable law.

44 Mortgage Release

Fannie Mae authorized the servicer to accept a voluntary conveyance of the property instead of acquiring the property through foreclosure proceedings.

Priority Level 2
Complete Borrower Response Package
Code Name Definition
H5 Complete BRP

The completed BRP has been received. This code must only be reported in the month the complete BRP is received. If an approved workout option (Level 1) was established in the same reporting cycle in which the complete BRP was received, the servicer must report the appropriate workout delinquency status code.

  • The Effective Date is the date that the completed workout package is received.

Priority Level 3
Bankruptcy–related Codes
Code Name Definition
3L Bankruptcy Chapter 7 – Asset Case

Notification to Fannie Mae that the Chapter 7 bankruptcy will remain in effect longer than normal due to trustee-found assets.

3M Bankruptcy – Property Surrendered

The property has been surrendered as part of the bankruptcy.

59 Chapter 12 Bankruptcy

The borrower has filed for bankruptcy under Chapter 12 of the U.S. Bankruptcy Code.

65 Chapter 7 Bankruptcy

The borrower has filed for bankruptcy under Chapter 7 of the U.S. Bankruptcy Code.

Note: If the Chapter 7 is an Asset Case, the servicer must report the delinquency status code – 3L.

66 Chapter 11 Bankruptcy

The borrower has filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.

67 Chapter 13 Bankruptcy

The borrower has filed for bankruptcy under Chapter 13 of the U.S. Bankruptcy Code. The Chapter 13 has not been confirmed by the bankruptcy court.

69 Chapter 13 Bankruptcy Plan – Post-Petition Period Utilize

The Chapter 13 plan has been confirmed by the bankruptcy court.

  • The Effective Date is the first month after the month in which the plan is confirmed.

Priority Level 4
Foreclosure-related Codes
Code Name Definition
20 Reinstatement

The servicer has accepted funds from a borrower on a mortgage loan that is in foreclosure to be applied to the loan to partially reinstate the mortgage loan.

24 Drug Seizure

The DOJ (or any other state or federal agency) has decided to seize (or has seized) a property under the forfeiture provision of the Controlled Substances Act.

30 Third-Party Sale

A successful third-party bidder was awarded the property at the foreclosure sale.

31 Probate

The servicer cannot pursue (or complete) foreclosure action because proceedings relating to a deceased borrower's estate are in process. This code must be reported until probate is resolved.

33 Contested or Litigated Foreclosure

The file is in a contested or litigated foreclosure status and is pending resolution.

  • The Effective Date is the date on which the answer to the complaint was filed or litigation was engaged.

43 Foreclosure

The servicer has referred the case to an attorney (or trustee) to take legal action to acquire the property through a foreclosure sale.

61 Second Lien Considerations

Applies to a second lien mortgage loan to indicate that the servicer is evaluating the advantages and disadvantages of pursuing a foreclosure action or recommending that the debt be charged off.

62 Veterans Affairs—"No-Bid"

The Department of Veterans Affairs refused to establish an “upset price” to be bid at the foreclosure sale for a VA- guaranteed mortgage loan that the servicer had referred for foreclosure.

63 Veterans Affairs—Refund

The Department of Veterans Affairs has requested information about a VA-guaranteed mortgage loan the servicer referred for foreclosure in order to reach a decision about whether to accept an assignment for purposes of refunding the mortgage loan to avoid foreclosure.

64 Veterans Affairs—Buydown

Fannie Mae has agreed to make a cash contribution to reduce the outstanding indebtedness of a VA-guaranteed mortgage loan for which the Department of Veterans Affairs failed to establish an “upset price” bid for the foreclosure sale in order to get the VA to reconsider its decision about establishing an “upset price.”

71 Foreclosure Sale Scheduled

The foreclosure sale is scheduled.

  • The Effective Date is the date on which the foreclosure sale is initially scheduled to occur.

94 Judgment or Decree Entered

The mortgage loan is in foreclosure and the judgment or decree has been entered. The code should remain until the foreclosure sale is scheduled.

95 Foreclosure Sale Continued

The foreclosure sale was delayed as a result of postponement, attorney delay, or other reason.

BE Title Issue in Progress

The foreclosure proceedings are delayed due to title issues and are pending resolution.

BG Pre-File Mediation/ Mediation

The mortgage loan has been referred to mediation. For loans that have been previously referred to an attorney for foreclosure, this code must not be used until the servicer is notified by the attorney that the loan has been referred to mediation. Once notified of the referral to mediation, this code must then replace the existing status code.

Priority Level 5
Collection-related Codes
Code Name Definition
AW Quality Right Party Contact

QRPC has been established but the servicer has not identified a specific solution for resolving the borrower’s delinquency. This code must only be reported for one month.

  • The Effective Date is the date that the QRPC was established.

15 Short Sale Approved/Marketing Property

The borrower has been approved to participate in a short sale and is actively marketing the property, but an offer has not yet been received or the borrower is making reduced or suspended payments during a short sale marketing period.

  • The Effective Date is the date the borrower has been approved to participate in a short sale.

  • The Completion Date is the anticipated ending date of the property listing.

42 Delinquent, No Action

The mortgage loan is 30+ days delinquent, but the servicer has not taken legal action. The servicer must then report this code until the servicer is able to establish QRPC and determine an appropriate course of action.

80 Breach Letter Sent

The breach or acceleration letter has been sent and the mortgage loan has not yet been referred to an attorney (or trustee) for foreclosure proceedings.

  • The Effective Date is the date on which the breach letter was sent.

Priority Level 6
Other Codes
Code Name Definition
26 Refinance

The servicer is aware that the borrower is pursuing an arrangement whereby the existing first-lien mortgage loan will be refinanced (paid off).

Note: This code must only be reported for one month.

49 Assignment

A mortgage loan is in the process of being assigned to the insurer or guarantor.

Reason for Delinquency Codes

Code Name Definition
001 Death of Borrower

The delinquency is attributable to the death of the borrower.

002 Illness of Borrower

The delinquency is attributable to a prolonged illness that keeps the borrower from working and generating income.

003 Illness of Borrower's Family Member

The delinquency is attributable to the borrower having incurred extraordinary expenses as the result of the illness of a family member (or having taken on the sole responsibility for repayment of the mortgage debt as the result of the co-borrower's illness).

004 Death of Borrower's Family Member

The delinquency is attributable to the borrower having incurred extraordinary expenses as the result of the death of a family member (or having taken on the sole responsibility for repayment of the mortgage debt as the result of the co-borrower's death).

005 Marital Difficulties

The delinquency is attributable to problems associated with a separation or divorce, such as a dispute over ownership of the property, a decision not to make payments until the divorce settlement is finalized, a reduction in the income available to repay the mortgage debt.

006 Curtailment of Income

The delinquency is attributable to a reduction in the borrower's income, such as a garnishment of wages, a change to a lower paying job, reduced commissions or overtime pay, or loss of a part-time job.

007 Excessive Obligations

The delinquency is attributable to the borrower having incurred excessive debts (either in a single instance or as a matter of habit) that prevent him or her from making payments on both those debts and the mortgage debt.

008 Abandonment of Property

The delinquency is attributable to the borrower having abandoned the property for reason(s) that are not known by the servicer (because the servicer has not been able to locate the borrower).

009 Distant Employment Transfer

The delinquency is attributable to the borrower being transferred or relocated to a distant job location and incurring additional expenses for moving and housing in the new location, which affects his or her ability to pay both those expenses and the mortgage debt.

011 Property Problem

The delinquency is attributable to the condition of the improvements or the property (for example, substandard construction, expensive and extensive repairs needed, subsidence of sinkholes on property, impaired rights of ingress and egress) or the borrower's dissatisfaction with the property or the neighborhood.

012 Inability to Sell Property

The delinquency is attributable to the borrower having difficulty in selling the property.

013 Inability to Rent Property

The delinquency is attributable to the borrower needing rental income to make the monthly payments and having difficulty in finding a tenant for a one-unit investment property or for one- or four-unit property.

014 Military Service

The delinquency is attributable to the borrower having entered active duty status and his or her military pay not being sufficient to enable the continued payment of the existing mortgage debt.

015 Other

The delinquency is attributable to reasons that are not otherwise included in this list of applicable codes.

016 Unemployment

Use this code

  • to indicate that the delinquency is attributable to a reduction in income resulting from a borrower having lost his or her job, or

  • for any period of HFA unemployment mortgage assistance.

017 Business Failure

The delinquency is attributable to a self-employed borrower having a reduction in income and/or excessive obligations that are the direct result of the failure of his or her business to remain a viable entity or, at least, to generate sufficient profit that the borrower can rely on to meet his or her personal obligations.

019 Casualty Loss

The delinquency is attributable to the borrower having incurred a sudden, unexpected property loss as a result of fire, storm, theft, earthquake, or flood.

022 Energy-Environment Costs

The delinquency is attributable to the borrower having incurred excessive energy-related costs or costs associated with the removal of environmental hazards in, on, or near the property.

023 Servicing Problems

The delinquency is attributable to the borrower being dissatisfied with the way the servicer is servicing the mortgage loan or with the fact that servicing of the mortgage loan has been transferred to a new servicer.

026 Payment Adjustment

The delinquency is attributable to the borrower being unable to make a new payment that resulted from an increase related to a scheduled payment change for a graduated-payment or ARM loan; increased monthly escrow accruals that are needed to pay higher taxes, insurance premiums, or special assessments; or the spreading of the amount needed to repay an escrow shortage over the next year.

027 Payment Dispute

The delinquency is attributable to a disagreement between the borrower and the servicer about the amount of the monthly payment, the acceptance of a partial payment, or the application of previous payments that results in the borrower's refusal to make the payment(s) until the dispute is resolved.

029 Transfer of Ownership Pending

The delinquency is attributable to the borrower having agreed to sell the property and deciding not to make any additional payments.

030 Fraud

The delinquency is attributable to a legal dispute arising out of a fraudulent or illegal action that occurred in connection with the origination of the mortgage loan (or later).

031 Unable to Contact Borrower

The reason for the delinquency cannot be ascertained because the borrower cannot be located or has not responded to the servicer's inquiries.

INC Incarceration

The delinquency is attributable to the borrower having been jailed or imprisoned (regardless of whether he or she is still incarcerated).

Related Announcements

The following table provides references to Announcements that are related to this topic.

Announcements Issue Date
Announcement SVC-2018-04 June 13, 2018
Announcement SVC–2015–05 April 8, 2015
Announcement SVC–2015–04 March 18, 2015