Fannie Mae recently published updates to two lender letters: LL-2021-02 that updates LL-2020-02 relating to the impact of COVID-19 on servicing; and LL-2021-07 that updates LL-2020-07 related to COVID-19 payment deferral.
In the update to LL-2021-02 Fannie Mae extended the suspension of foreclosure-related activities through June 30, 2021. The letter also updates the requirements related to forbearance plans for borrowers impacted by COVID-19.
In LL-2021-07 Fannie Mae updated the eligibility criteria for a COVID-19 payment deferral to permit the mortgage loan to be less than or equal to 18 months delinquent as of the date of evaluation (in addition to the mortgage loan having been current or less than two months delinquent as of March 1, 2020). The updates to the Lender Letter also eliminate the limit of one COVID-19 payment deferral. The new language states that the mortgage loan may receive more than one COVID-19 payment deferral, however, no more than 18 months of cumulative past-due principal and interest payments may be deferred. The Letter notes that this does not include past-due principal and interest payments deferred with a non-COVID-19 payment deferral. Other sections of the Lender Letter were also revised to reflect the updated eligibility requirements.