Fannie Mae Extends Temporary Policies in Response to the COVID-19 Emergency
February 25, 2021
Fannie Mae updated two Lender Letters today to its single-family servicers communicating temporary policies in response to the COVID-19 emergency.
- LL-2021-02, Impact of COVID-19 on Servicing, has been updated as follows:
- Provides the servicer authorization to grant an extension of the forbearance plan term of up to 3 months, and grant one or more forbearance plan term extensions 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.
- The servicer must receive Fannie Mae’s prior written approval for a forbearance plan to exceed a cumulative term of 18 months as measured from the start date of the initial forbearance plan or result in the mortgage loan becoming greater than 18 months delinquent.
- In addition, we are further extending the suspension of foreclosure-related activities through June 30, 2021.
- LL-2021-07, COVID-19 Payment Deferral, has been updated to permit the mortgage loan to be less than or equal to 18 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 18 months of past-due principal and interest (P&I) payments.
For additional details, view the Lender Letters or visit our COVID-19 Investor Resources webpage.