Fannie Mae updated Lender Letter LL-2021-07 to update escrow analysis requirements. Per the updated Lender Letter, Fannie Mae clarified that servicers must spread any escrow shortage repayment amount identified in the next annual analysis after a COVID-19 payment deferral or a Flex Modification in accordance with the reduced eligibility criteria for COVID-impacted borrowers over either the remaining escrow shortage repayment period or another period of up to 60 months. This clarification also applies to Fannie Mae Flex Modification and disaster payment deferral. The updated Lender Letter is effective immediately.
Click to view the Fannie Mae Lender Letter LL-2021-07: https://www.tenaco.com/wp-content/uploads/2022/05/Fannie-Mae-Update-to-Lender-Letter-LL-2021-07-05-04-22.pdf
