Fannie Mae Updates Guidance on COVID-19 Payment Deferral
On May 27, 2020, Fannie Mae updated Lender Letter 2020-07 (LL-2020-07), which outlines Fannie Mae’s previously-announced payment deferral plan that it jointly developed with Freddie Mac at the direction of FHFA. The payment deferral option is designed to allow borrowers impacted by COVID-19 related hardships to return their mortgage to a current status after up to 12 months of missed payments.
The most recent changes to LL-2020-07 provide, in part, additional guidance on:
- Reporting a delinquency status code for a COVID-19 payment deferral
- Paying expenses and requesting reimbursement related to a COVID-19 payment deferral
- Reporting a COVID-19 payment deferral to Fannie Mae
- Updates to the Investor Reporting Manual
The updated LL-2020-07 can be found in its entirety here.
