Fannie Mae updates Lender Letter 2020-07 on Covid-19 payment deferrals

Federal Issues Covid-19 Fannie Mae Mortgages Mortgage Servicing Debt Collection

On July 15, Fannie Mae updated Lender Letter 2020-07. The additions (i) update requirements for repayment of escrow shortage amounts identified in connection with a Covid-19 payment deferral or as part of the next annual analysis, (ii) clarify how certain applicable fees (e.g., servicing, guaranty, and excess servicing fees) will be reimbursed for mortgage loans that receive a disaster payment deferral, and (iii) clarify that the servicer must evaluate the borrower for a Flex Modification in accordance with the reduced eligibility criteria when the borrower becomes 60 days delinquent within six months of the Covid-19 related payment deferral’s effective date and the servicer is unable to achieve quality right party contact.