7/31/2019 Hardship Doc Req s

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Hardship Documentation Requirementsfor Foreclosure Prevention Alternatives

Hardship Documentation Unemployment No hardship documentation required.

Underemployment following a previousinvoluntary job loss

No hardship documentation required, as long as theborrower has submitted the income documentationthat supports the income described in the RequiredIncome Documentation section.

Income reduction (e.g., elimination ofovertime, reduction in regular working hours,or a reduction in base pay)

No hardship documentation required, as long as theborrower has submitted the income documentationthat supports the income described in the RequiredIncome Documentation section.

Divorce or legal separation;

Separation of borrowers unrelated bymarriage, civil union, or similar domesticpartnership under applicable law

One of the following:

Divorce decree signed by the court; Separation agreement signed by the court;

Current credit report evidencing divorce, separation,or that the non-occupying borrower has a differentaddress; or

Recorded quitclaim deed evidencing that the non-occupying borrower or co-borrower has relinquishedall rights to the property.

Death of a borrower or death of either theprimary or secondary wage earner in thehousehold

One of the following:

Death certificate, or

Obituary or newspaper article reporting the death.Long-term or permanent disability; Seriousillness of a borrower/co-borrower or

dependent family member

One of the following:

Doctor’s certificate of illness or disability,

Medical bills, or Proof of monthly insurance benefits or government

assistance (if applicable).Disaster (natural or man-made) adverselyimpacting the property or borrower’s place ofemployment

One of the following:

Insurance claim,

Federal Emergency Management Agency grant orSmall Business Administration loan, or

Borrower or employer property located in a federally-declared disaster area.

Distant employee transfer No hardship documentation required.

Business failure Tax return from the previous year (including allschedules) AND

Proof of business failure supported by one of thefollowing:o Bankruptcy filing for the business,o Two months recent bank statements for the

business account evidencing cessation ofbusiness activity, or

o Most recent signed and dated quarterly or year-to-date profit and loss statement.

 © 2011 Fannie Mae. Trademarks of Fannie Mae Page 1 of 1 10/01/2011This document is incorporated by reference into the Fannie Mae Servicing Guide