VA issued Circular 26-17-39 (Circular), introducing a new Disaster Loan Modification option. VA introduced the Disaster Loan Modification (DLM) program in 2016, allowing servicers to extend permanent payment relief to borrowers impacted by a federally-declared disaster. The DLM program requires borrowers to complete a 3-month trial payment plan prior to receiving permanent payment relief. Pursuant to the Circular, servicers now have the option to offer a DLM without the 3 month trial payment plan if: (1) the loan was current at the time of the disaster; (2) the loan term is extended for a period equal to the number of months the loan is delinquent (post disaster); (3) the loan term extension is 12 months or less (unless a longer term is approved by VA); and (4) the servicer waives the delinquent interest accrued on the loan. The Circular went into effect November 27, 2017.
Fannie Mae
Fannie Mae Issues Servicing Guide Announcement SVC-2024-06
Fannie Mae issued Servicing Guide Announcement SVC-2024-06 (Announcement), setting forth updates to the Servicing Guide. Per the Announcement, Fannie Mae clarified requirements related to eMortgages.
November 14, 2024
