• MPF Xtra
  • April 10, 2020

MPF Announcement 2020-18

Impact of COVID-19 on MPF Xtra Servicing

Effective Date: Immediately (unless otherwise noted)

On April 8, 2020, Fannie Mae issued an update to Lender Letter LL-2020-02, communicating updates to temporary policies previously announced, to enable servicers to better assist borrowers impacted by COVID-19. The policies in this Lender Letter are effective immediately and are effective until Fannie Mae provides further notice, unless otherwise stated.

Updates to Fannie Mae Lender Letter 2020-02:

  • In response to the Coronavirus Aid, Relief, and Economic Security Act (CARES), updated certain servicing requirements and reminding Servicers of their responsibility to comply with law.

  • Clarified the Servicers responsibilities related to achieving QRPC for a borrower impacted by COVID-19 for a forbearance plan.

  • Expanded forbearance plan terms for borrowers impacted by COVID-19.

  • Updated requirements, when evaluating the borrower for a payment deferral or mortgage loan modification after a forbearance plan.

  • Clarified that Servicers must servicer comply with the requirements of the Fair Credit Reporting Act (“FCRA”), as amended by the CARES Act for borrowers impacted by COVID-19.

  • Clarified that Servicers must suspend foreclosure-related activities in accordance with the requirements of the CARES Act.

As a reminder, PFIs and Servicers originating, delivering or servicing:

  • MPF Traditional (Conventional) loans must follow the policies and guidance recently issued by the MPF Program. Please visit the MPF Website to view recently published MPF Announcements.

  • MPF Government loans and MPF Government MBS loans, must follow policies and guidance issued by the applicable Government Agencies.

  • MPF Direct loans, must follow policies and guidance issued by the product’s investor, Redwood Trust.

To gain a full understanding of these topics, Servicers should review the entire Fannie Mae Lender Letter plus any applicable Fannie Mae Servicing Guide chapters, forms, or exhibits noted in the announcement.

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