Fannie Mae updates Covid-19 selling FAQs

Federal Issues Fannie Mae Mortgages Covid-19

On September 17, Fannie Mae updated its Covid-19 FAQs for sellers to include a new question about whether federal student loan payments that are placed in a Covid-related forbearance should count towards a borrower’s debt-to-income ratio. Additionally, Fannie Mae updated previous questions covering the purchase of loans that are in forbearance, including whether a lender owes the loan level pricing adjustment (LLPA). Specifically, the FAQs state that if a forbearance begins any time on the sale date of the loan, lenders owe the LLPA to Fannie Mae.