Fannie Mae updates Covid-19 servicing guidance

Federal Issues Covid-19 Fannie Mae Forbearance FCRA Foreclosure

On April 8, Fannie Mae updated its guidance to single-family servicers regarding the impact of Covid-19 on servicing.  In particular, the guidance revises prior guidance on offering forbearance plans to comply with the recent enactment of the federal CARES Act.  Among the updates to the servicer guidance are: (i) clarifying responsibilities relating to achieving “quality right party contact” for borrowers in a forbearance plan; (ii) providing a specific delinquency code for use in reporting to Fannie Mae; (iii) granting flexibility for inspections; (iv) extending deadlines for submission of financial statements and Form 582 to April 30; (v) clarifying forbearance plan terms; (vi) eliminating the requirement that the servicer determine occupancy status prior to evaluating a borrower for a workout option; (vii) requiring that the servicer comply with FCRA and report borrowers affected by Covid-19; and (viii) requiring servicers to suspend all foreclosure related activities to comply with the CARES Act and suspend filing motions for relief in bankruptcy cases.