184.108.40.206 Transition after forbearance
The servicer must begin attempts to contact the borrower no later than thirty days prior to the expiration of the forbearance plan term and must continue outreach attempts until QRPC is obtained or until the forbearance plan term has expired. The availability of transition options available to a borrower will depend on whether QRPC has been obtained and whether the hardship has been resolved, as well as the borrower’s intention with respect to the property and the borrower’s ability to repay.114
If the servicer has obtained QRPC with the borrower, regardless of whether the borrower was on a disaster-related forbearance plan, the servicer should evaluate the borrower for a Disaster Payment Deferral if the mortgage loan is otherwise eligible for that option.115 If the servicer determines that the borrower is not capable of maintaining the current contractual monthly payment of principal, interest, taxes, and insurance, or the mortgage loan is greater than twelve months delinquent, the servicer must evaluate the borrower for a Fannie Mae Flex Modification in accordance with the reduced eligibility criteria delineated in the Servicing Guide.116
Fannie Mae also allows for consideration of a deferral and Flex Modification (as described at § 220.127.116.11, infra) when QRPC is not obtained. If the borrower converted from an active Trial Period Plan (TPP) to a forbearance plan, the borrower may subsequently have been eligible for a Fannie Mae workout option upon completion of the forbearance plan. If the borrower was eligible for a loan modification, the servicer had to commence a new TPP.117
114 Fannie Mae, Single-Family Servicing Guide, D2-3.2-01, Forbearance Plan. As of October 1, 2020, Fannie Mae eliminated the Extend Modification for Disaster Relief and Cap and Extend Modification for Disaster Relief as available loss mitigation options and replaced them with the Payment Deferral for Disaster Relief (Disaster Payment Deferral). Fannie Mae Servicing Guide Announcement 2020-04 (Nov. 10, 2020), available at https://singlefamily.fanniemae.com. The Disaster Payment Deferral was introduced in detail on July 15, 2020 in Fannie Mae Lender Letter LL-2020-11. The Disaster Payment Deferral became effective as of October 1, 2020, and evaluation for this option was mandatory as of that date.
115 See § 18.104.22.168, infra.
116 See § 22.214.171.124.2, infra.
117 Fannie Mae, Single-Family Servicing Guide, former D1-3-02 (as published Apr. 11, 2018), Providing Relief to a Borrower Who is Affected by a Disaster.