Impact of COVID-19 on MPF Xtra Servicing
Effective Date: Immediately (unless otherwise noted)
On June 10, 2020 Fannie Mae issued updates to Lender Letter LL-2020-02 and Lender Letter LL-2020-07, respectively, which communicated updates to temporary policies previously announced, to enable servicers to better assist borrowers impacted by COVID-19. The policies in the Lender Letters are effective immediately and are effective until Fannie Mae provides further notice, unless otherwise stated.
Updates to Fannie Mae Lender Letter LL-2020-02- Impact of COVID-19 on Servicing
- Clarified that Servicers are authorized to not send a payment reminder notice to the Borrower during an active forbearance plan term.
Updates to Fannie Mae Lender Letter LL-2020-07- COVID-19 Payment Deferral
- Added a reference to the incentive fees for retention workout options introduced in Lender Letter LL-2020-09.
- Clarified when a COVID-19 impacted Borrower whose mortgage loan was modified pursuant to HAMP loses good standing.
- Clarified that the Servicer is authorized to continue solicitation for a Fannie Mae Flex Modification based on reduced eligibility criteria when a Borrower has defaulted on a COVID-19 payment deferral.
- Updated the COVID-19 payment deferral agreement in reference to the CARES Act.
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.