Fannie Mae Clarifies COVID-19 Evaluation Hierarchy with LL-2020-02 Update
Today, Fannie Mae updated Lender Letter LL-2020-02, Impact of COVID-19 on Servicing, to its single-family servicers communicating temporary policies in response to the COVID-19 national emergency.
This update clarifies the evaluation hierarchy with the introduction of COVID-19 payment deferral. We are also updating our reclassification process for mortgage loans pooled under the Amended and Restated 2007 Single-Family Master Trust Agreement in response to the Coronavirus Aid, Relief, and Economic Security Act on Mar. 27, 2020 ("CARES Act"), when a borrower impacted by COVID-19 is provided a forbearance plan.
The updates impact the following sections:
- Reclassification of MBS mortgage loans
- Property inspections and preservations
- Evaluating the borrower for a payment deferral or mortgage loan modification after a forbearance plan
- Suspension of foreclosure activities and certain bankruptcy requirements
Read the Lender Letter for detail on all the changes.
Learn more about what Fannie Mae is doing in response to the COVID-19 emergency on the Our Approach page.