Fannie Mae Issues New and Revised Servicing Guidance

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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:

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.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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