Fannie Mae Addresses Temporary Eligibility Requirements for Purchase and Refinance Transactions and Date Extension on Selling Loans in Forbearance with Lender Letter Updates
Today, Fannie Mae updated two Lender Letters, LL-2020-03 and LL-2020-06, to its single-family sellers communicating temporary policies in response to the COVID-19 national emergency.
LL-2020-03, Impact of COVID-19 on Originations, has been updated to address temporary eligibility requirements for purchase and refinance transactions for borrowers impacted by the COVID-19 pandemic.
A borrower who is not current and has missed payments on any mortgage loan is eligible for a new mortgage loan if those missed payments were resolved in accordance with the requirements detailed in the Lender Letter.
- If the borrower resolved missed payments through a reinstatement, they are eligible for a new mortgage loan.
- If outstanding payments will be or have been resolved through a loss mitigation solution, the borrower is eligible for a new mortgage loan if they have made at least three timely payments as of the note date of the new transaction.
Lenders may immediately apply these policies to loans in process and must apply them for loans with application dates on or after June 2, 2020. These policies will be effective until further notice.
LL-2020-06, Selling Loans in Forbearance due to COVID-19, has also been updated to extend eligible note dates to June 30, 2020 and delivery to August 31, 2020. In addition, the Representations and Warranties section has been updated to clarify that loans in forbearance with an acceptable payment history are eligible for enforcement relief.
Learn more about what Fannie Mae is doing in response to the COVID-19 emergency on Our Approach page.