Fannie Mae Introduces Extend Modification for Disaster Relief

Fannie Mae issued Lender Letter LL-2017-09, introducing the Fannie Mae Extend Modification for Disaster Relief (Extend Mod). The Extend Mod is a temporary post-disaster forbearance mortgage loan modification. The Lender Letter sets forth requirements and features of the Extend Mod, including eligibility requirements, modification terms, and escrow analysis. The Lender Letter also announces revisions to eligibility requirements for the Fannie Mae Cap and Extend Modification for Disaster Relief and the Fannie Mae Flex Modification. In addition, the Lender Letter provides information about the following topics: disbursement of hazard loss draft proceeds; reimbursement for inspections conducted to confirm repairs on properties with an insured loss; and verification of payment record with respect to borrower-initiated termination of conventional mortgage insurance. The policies in the Lender Letter are temporary and are effective until Fannie Mae provides further notice. Servicers must implement the Extend Mod, and the revisions to the existing Cap and Extend Modification for Disaster Relief and the Flex Modification no later than February 1, 2018 (however, servicers are encouraged to implement immediately). All other updates are effective immediately.

Click here to view the Fannie Mae Lender Letter LL-2017-09