Potential Impact of Foreclosure Moratorium Extension(s) on Delinquent Loan Buyout Policy

December 9, 2020

As a reminder, effective January 1, 2021, Fannie Mae is extending the timeframe for its delinquent loan buyout policy for single-family mortgage-backed securities (MBS) from four months past due to twenty-four months past due. Along with other activities mentioned in our September 30 announcement of this extension, a loan referred to foreclosure is an action that would result in a delinquent loan being removed from the MBS pool. Such foreclosure moratorium extensions, as noted today in LL-2020-02 and any further foreclosure moratorium extensions announced in the future, may result in delinquent loans remaining in the pool longer than they would have should the foreclosure moratorium not have been in place.

For questions, please contact the Fannie Mae Investor Help Line at 1-800-232-6643, Option 3 or by e-mail.