MPF Announcement 2023-72

MPF Xtra Servicing – Lender Letter LL-2023-07

Effective Date: Immediately (unless otherwise noted)

Fannie Mae published Lender Letter LL-2023-07 updating the following COVID-19 Payment Deferral and COVID-19 Fannie Mae Flex Modification temporary policies that were previously announced: 

• Effective November 1, 2023, the Quality Right Party Contact (QRPC) flexibility will be removed when evaluating borrowers for a COVID-19 payment deferral or flex modification.

• Updated the eligibility criteria for a COVID-19 payment deferral or a Fannie Mae Flex Modification for COVID-19 impacted Borrowers to indicate that to be eligible:
  • a mortgage loan must be reported with reason for delinquency code 22* in the November 2023 delinquency reporting period (which is for October 2023 activity) for a COVID-19 hardship identified prior to November 1, 2023 and continue to be reported with code 22 until the date of evaluation; and
  • the evaluation must occur before Nov. 1, 2024.

*Note: To ensure a successful upload of your Exhibit B to eMAQCSplus, PFIs must report 22 in the cell for DELINQ_REASON_CODE of the Exhibit B file.”

• Requiring the modification effective date for a Fannie Mae Flex Modification for COVID-19 impacted borrowers be on or before May 1, 2025.

• For evaluations on and after November 1, 2024, the Servicers must evaluate borrowers for a workout option in accordance with the workout hierarchy as described in the Servicing Guide.

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.