Freddie Mac issued Bulletin 2024-E (Bulletin) and Fannie Mae issued Lender Letter LL-2024-02 (Lender Letter), updating Flex Modification requirements. Per the Bulletin and Lender Letter, Freddie Mac and Fannie Mae updated Flex Modification requirements, primarily related to determining the terms of the Flex Modification. In addition, Freddie Mac and Fannie Mae:
- Eliminated the housing expense-to-income calculation requirement in the evaluation of a Flex Modification;
- Replaced the term “interim month” with the term “processing month” in the processing of a Flex Modification for consistency with similar processing requirements in relation to payment deferral; and
- Revised Evaluation Notices in accordance with the updated Flex Modification requirements.
Servicers must begin evaluating eligible borrowers for the updated Freddie Mac Flex Modification and Fannie Mae Flex Modification on or after December 1, 2024 (however, servicers are encouraged to begin implementation as early as November 1, 2024.)
Click to view the Freddie Mac Guide Bulletin 2024-E: https://www.tenaco.com/wp-content/uploads/2024/05/Freddie-Mac-Guide-Bulletin-2024-E-05-29-24.pdf
Click to view the Fannie Mae Lender Letter LL-2024-02: https://www.tenaco.com/wp-content/uploads/2024/05/Fannie-Mae-Lender-Letter-LL-2024-02-05-29-24.pdf
