MPF Announcement 2021-82

Impact of COVID-19 on MPF Xtra Servicing 

Effective Date: Immediately (unless otherwise noted)

On November 17, 2021, Fannie Mae published an update to Lender Letter LL-2021-07, which communicated updates to temporary policies previously announced, to enable Servicers to better assist Borrowers impacted by COVID-19. The policies in the Lender Letter are effective immediately and are effective until Fannie Mae provides further notice, unless otherwise stated.

• Updated the requirements related to performing an escrow analysis. Servicers are now required to:
  • perform an escrow analysis when evaluating a Borrower for a COVID-19 payment deferral;
  • inform the Borrower of the full monthly contractual payment based on repayment of any escrow shortage amount over a term of 60 months before the Borrower can accept the COVID-19 payment deferral offer; and
  • spread any escrow shortage repayment amount in equal monthly payments over a period of 60 months, unless the Borrower decides to pay the escrow shortage amount in a lump sum up-front or over a shorter period (not less than 12 months) for a COVID-19 payment deferral or a Flex Modification for COVID-19 impacted Borrowers.

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.