Fannie Mae Issues New and Revised Servicing Guidance
Fannie Mae recently announced the release of Lender Letter 2020-11, updates to five previously issued Lender Letters, and the publication of the July Servicing Guide Update.
First, Lender Letter 2020-11, addressed to all Fannie Mae single-family servicers, introduces disaster payment deferral as a new retention workout option to assist borrowers whose delinquency resulted from a short-term hardship that has since been resolved.
Second, the following five Lender Letters have been updated:
- Lender Letter 2020-02, addressing the impact of COVID-19 on servicing
- Lender Letter 2020-05, addressing payment deferral
- Lender Letter 2020-07, addressing COVID-19 payment deferral
- Lender Letter 2020-08, addressing changes to servicer principal and interest advance requirements
- Lender Letter 2020-09, addressing incentive fees for retention workout options
Finally, the July Servicing Guide Update (SVC-2020-03) revised the Fannie Mae Servicing Guide to, among other things: (i) revise the servicer’s responsibilities and requirements when managing insurance loss proceeds, (ii) revise post-disaster credit reporting requirements by no longer requiring the suspension of credit reporting for borrowers impacted by a disaster event, and (iii) clarify that servicers may choose not to send a payment reminder for mortgage loans in active forbearance.
