Fannie Mae Updates 2021-02 and 2021-07 Lender Letters | Weiner Brodsky Kider PC
Fannie Mae recently posted updates to two Lender Letters: LL-2021-02 which updates LL-2020-02 relating to the impact of COVID-19 on maintenance; and LL-2021-07 which updates LL-2020-07 regarding the COVID-19 payment deferral.
In the update to LL-2021-02, Fannie Mae extended the suspension of foreclosure-related activities until June 30, 2021. The letter also updates the requirements for forbearance plans for borrowers affected by COVID -19.
In LL-2021-07, Fannie Mae updated the eligibility criteria for a COVID-19 deferral of payment to allow the mortgage to be less than or equal to 18 months overdue on the valuation date (in plus the mortgage that was outstanding or less than two months past due as of March 1, 2020). Lender letter updates also remove the limit on a COVID-19 deferral of payment. The new wording indicates that the mortgage loan may receive more than one COVID-19 payment deferral, however, no more than 18 months of cumulative principal and interest payment in arrears can be deferred. The letter notes that this does not include deferred overdue principal and interest payments with a non-COVID-19 payment deferral. Other sections of the Letter to Lender have also been revised to reflect updated eligibility requirements.