Fannie Mae Extends Temporary Policies in Response to the COVID-19 Emergency
Fannie Mae updated four Lender Letters today to its single-family sellers and servicers communicating temporary policies in response to the COVID-19 emergency.
- LL-2021-02, Impact of COVID-19 on Servicing, has been updated to provide the servicer authorization to grant an extension of the forbearance plan term of up to 3 months if upon reaching a cumulative forbearance plan term of 12 months, as measured from the start date of the initial forbearance plan, the servicer determines the borrower’s hardship has not been resolved. In addition, we are further extending the suspension of foreclosure-related activities through March 31, 2021.
- LL-2021-03, Impact of COVID-19 on Originations, has been updated to extend application dates to March 31, 2021 for verbal verifications of employment and power of attorney flexibilities.
- LL-2021-04, Impact of COVID-19 on Appraisals, has been updated to extend the temporary policies to loans with application dates on or before March 31, 2021, unless otherwise noted.
- LL-2021-07, COVID-19 Payment Deferral, has been updated to permit the mortgage loan to be less than or equal to 15 months delinquent as of the date of evaluation and eliminate the limit of one COVID-19 payment deferral and instead limit the COVID-19 payment deferral to a cumulative deferral of 15 months of past-due principal and interest (P&I) payments.
For additional details on the changes, view the Lender Letters or visit our COVID-19 Investor Resources webpage.