Servicing Guide

Repayment Plan

$500

The following conditions must be satisfied:

• The mortgage loan must be 60 days or more delinquent when first reported with a delinquency status code 12 – Repayment Plan.

• The mortgage loan must be brought current upon the successful completion of the repayment plan.

• The mortgage loan must not be brought current in the same month as the delinquency status code 12 – Repayment Plan is reported.

• The mortgage loan must not be paid in full or repurchased after the delinquency status code 12 – Repayment Plan is reported and before the mortgage loan becomes current.

• If a repayment plan incentive fee has been paid for the mortgage loan previously, a 12-month period must have elapsed from the date the mortgage loan became current.

Number of Days the Mortgage Loan is Delinquent as of the First Trial Period Plan Payment Due Date

Incentive Fee Amount

The following conditions apply:

• The servicer must close the mortgage loan modification within two months of the last day of the month in which the final trial period plan payment is due.

• If the mortgage loan is placed in bankruptcy, it is eligible for the $1,600 incentive fee only if

• • a Trial Period Plan begins within five months after the servicer has reported a bankruptcy-related delinquency status code, and

  • only Priority Level 1 or Priority Level 2 delinquency status codes have been reported between the initial reporting of the bankruptcy and the beginning of the Trial Period Plan.

• If the mortgage loan is less than or equal to 60 days delinquent and has been placed in a forbearance plan, it is eligible for the $1,600 incentive fee only if

• • a Trial Period Plan begins immediately following the forbearance period, and

    the forbearance plan was based on one of the following hardships:

    • a natural disaster,

    • the death of the borrower or co-borrower,

    • the death of a family member who contributed to the monthly payment,

    • a divorce or separation that will result in the borrower being legally awarded the property,

    • the inability to pay due to the pending settlement of a disability or major medical claim,

    • a unique financial hardship (See D2-3.2-03, Forbearance Plan for a Unique Hardship), or

    • the borrower becomes unemployed (See D2-3.2-02, Forbearance Plan for an Unemployed Borrower).

Less than or equal to 120 days delinquent

$1,600

121 days delinquent through 210 days delinquent

$1,200

Fannie Mae Short Sale

Number of Days the Mortgage Loan is Delinquent at the Time the Case is Closed in Fannie Mae’s servicing solutions system

Incentive Fee Amount

None

Less than or equal to 210 days delinquent

$2,500

211 days delinquent up to and including 300 days delinquent

$1,500

Greater than 300 days delinquent

$750

Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure)

Number of Days the Mortgage Loan is Delinquent at the Time the Case is Closed in Fannie Mae’s servicing solutions system

Incentive Fee Amount

None

Less than or equal to 210 days delinquent

$2,500

211 days delinquent up to and including 300 days delinquent

$1,500

Greater than 300 days delinquent

$750

Fannie Mae HAMP Modification – Servicer Incentive

Number of Days the Mortgage Loan is Delinquent as of the First Trial Period Plan

Incentive Fee Amount

The following conditions must be satisfied:

• The servicer must have provided a HAMP Registration Form and HAMP loan setup data prior to the effective date HAMP modification.

• The borrower's monthly mortgage payment ratio must be equal to or greater than 31% prior to the implementation of a HAMP modification.

Less than or equal to 120 days delinquent

$2,100

121 days delinquent through 210 days delinquent

$1,700

Greater than 210 days delinquent

$900

If the borrower’s monthly payment (P&I, taxes, and all related property insurance and HOA or condo association fees, but excluding MI) is reduced by 6% or more, the borrower will earn an annual ”pay for performance” principal balance reduction payment for up to 5 years equal to the lesser of the following:

• $1,000 ($83.33 per month), or

• one-half of the reduction in the borrower's annualized monthly payment for each month a timely payment is made.

Fannie Mae HAMP Modification-Expanded Borrower Incentive

”pay for performance” principal balance reduction payment of $5,000

The following conditions must be satisfied:

• the mortgage loan must

  • be a first lien conventional mortgage loan that was previously modified under HAMP;

  • be in good standing as defined in Identifying Loss of Good Standing in D2-3.2-07, Fannie Mae HAMP Modificationon the sixth anniversary of the Trial Period Plan effective date; and

  • not be paid in full.

• the borrower must have submitted an executed Real Estate Fraud Certification (Form 720) or U.S. Treasury Department’s (Treasury) ”Dodd Frank Certification” on or before the sixth anniversary of the HAMP Trial Period Plan effective date or January 1, 2016, whichever is later.

Fannie Mae 2MP Modification – Servicer Incentive

$500

None

Fannie Mae 2MP Modification – Borrower Incentive

If the borrower's monthly second lien mortgage payment is reduced by 6% or more, the borrower will receive an annual ”pay for performance” principal balance reduction payment of $250 for up to 5 years.

None