Fannie Mae issued Servicing Guide Announcement SVC-2020-03 (Announcement). Per the Announcement, Fannie Mae eliminated certain requirements for managing insurance loss proceeds that do not appropriately manage risk. Fannie Mae also removed the requirement to suspend credit reporting for borrowers impacted by a disaster event. In addition, the Announcement clarified that servicers are not required to send payment reminder notices to borrowers during active forbearance plans. Servicers may implement the insurance loss proceeds revisions immediately or at a future date of their choosing. All other revisions are effective immediately.
Click here to view the Fannie Mae Servicing Guide Announcement SVC-2020-03
