Fannie Mae issued an update to Lender Letter LL-2023-03 and issued Lender Letter LL 2023-07 to retire servicing policies related to COVID-19. Per the Lender Letters, Fannie Mae retired:
- Delinquency code 022 (Energy-Environment Costs) as an available reason for reporting delinquencies related to COVID-19;
- COVID-19 related forbearance plan flexibilities; and
- The flexibility with regard to achieving Quality Right Party Contact when evaluating a borrower for a COVID-19 related forbearance plan, payment deferral or Fannie Mae Flex Modification.
Fannie Mae also updated the eligibility criteria for a COVID-19 payment deferral or a Fannie Mae Flex Modification for COVID-19 impacted borrowers with respect to the reporting of delinquency doe 022. In addition, Fannie Mae now requires that the modification effective date for a Fannie Mae Flex Modification for COVID-19 impacted borrowers be on or before May 1, 2025.
The servicing policies and flexibilities described above will be retired as of November 1, 2023. All other changes went into effect August 9, 2023.
Click to view the Fannie Mae Update to Lender Letter LL-2023-03: https://www.tenaco.com/wp-content/uploads/2023/08/Fannie-Mae-Update-to-Lender-Letter-LL-2023-03-08-09-23.pdf
Click to view the Fannie Mae Lender Letter 2023-07: https://www.tenaco.com/wp-content/uploads/2023/08/Fannie-Mae-Lender-Letter-LL-2023-07-08-09-23.pdf
