InfoBytes Blog
Fannie updates Covid-19 FAQs
On June 3, Fannie Mae updated its Covid-19 FAQs for sellers to reflect updates to the temporary purchase and refinance eligibility outlined in Lender Letter LL-2020-03. As previously covered by InfoBytes, Fannie Mae announced that borrowers are eligible to purchase a new home or refinance their mortgage if they are current on their mortgage—defined as having “made all mortgage payments due in the month prior to the note date of the new loan transaction by no later than the last business day of that month”—or if the mortgage is currently in a loss mitigation solution (the borrower must have made at least three timely payments as of the note date of the new transaction). The newly updated selling FAQs outline additional details of this policy, including (i) what is meant by “full payments” with regard to loss mitigation programs; (ii) whether the forbearance must be completed before a borrower can be eligible for a purchase or refinance transaction; and (iii) what sources of funds are eligible to be used to reinstate mortgages with missed payments.