Fannie Mae Communicates Temporary Servicing Policies for Borrowers Impacted by COVID-19
On March 18, Fannie Mae released Lender Letter (LL-2020-02), Impact of COVID-19 on Servicing, to its single-family servicers communicating temporary policies to enable servicers to better assist borrowers impacted by COVID-19. The policies in this Lender Letter are effective immediately and are effective until Fannie Mae provides further notice.
The Lender Letter (LL-2020-02) provides information about the following:
- Forbearance plan eligibility: We expanded eligibility for a forbearance plan for borrowers impacted by COVID-19.
- Evaluating the borrower for a mortgage loan modification after a forbearance plan: We clarified the mortgage loan modifications that must be considered near the conclusion of a forbearance plan term.
- Credit bureau reporting: We clarified that servicers must suspend credit reporting when the hardship is related to COVID-19.
- Suspension of foreclosure sales: We are instructing servicers to not allow any foreclosure sales within the next 60 days.
- Additionally, we are providing information about our Disaster Response Network as a reference for Fannie Mae borrowers.
Learn more about what Fannie Mae is doing in response to the COVID-19 emergency on the Our Approach page.