WBK Industry News - Federal Regulatory Developments

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.