Fannie Mae issued an update to Lender Letter LL-2021-07 to adjust the Fannie Mae Flex Modification eligibility criteria for COVID-19 impacted borrowers. Per the updated Lender Letter, Fannie Mae removed the post-modification MTMLTV threshold related to setting the modification interest rate when determining the new modified terms for a Fannie Mae Flex Modification that satisfies the reduced eligibility criteria. Fannie Mae also provided information for evaluating a borrower for a Fannie Mae Flex Modification that defaulted after completing a COVID-19 payment deferral. In addition, Fannie Mae clarified requirements for performing an escrow analysis with respect to a Flex Modification for COVID-19 impacted borrowers. The updated requirements are effective 08/31/21 (servicers are, however, encouraged to implement the revisions immediately.)
Click to view the Fannie Mae Lender Letter LL-2021-07: https://www.tenaco.com/wp-content/uploads/2021/07/Fannie-Mae-Lender-Letter-Update-to-LL-2021-07-06-30-21.pdf
