Fannie Mae issued Lender Letter LL-2023-04, updating Fannie Mae’s payment deferral requirements. Per the Lender Letter, Fannie Mae replaced all payment deferral requirements reflected in Servicing Guide D2-3.2-05 (Payment Deferral) with the updated requirements outlined in the Lender Letter. The updated payment deferral requirements include updates with respect to eligibility criteria, completing a payment deferral, and soliciting the borrower for a payment deferral or a Fannie Mae Flex Modification after a failed repayment plan. The updated requirements include updates to disaster payment deferral requirements.
In addition, Fannie Mae:
- updated outreach requirements for mortgage loans near maturity or projected payoff with an outstanding non-interest bearing balance by requiring outreach prior to the maturity date or projected date of payoff in order to determine if the borrower can afford to pay the total amount due or requires assistance; and
- removed eligibility criteria exclusions for payment deferral, disaster payment deferral, COVID-19 payment deferral, and Fannie Mae Flex Modification.
Revisions related to the updated payment deferral requirements must be implemented by October 1, 2023 (servicers may, however, implement the updated starting July 1, 2023). All other revisions are effective March 29, 2023.
Click to view the Fannie Mae Lender Letter LL-2023-04: https://www.tenaco.com/wp-content/uploads/2023/03/Fannie-Mae-Lender-Letter-LL-2023-04-03-29-23.pdf
