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:
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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.
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Clarified the Servicers responsibilities related to achieving QRPC for a borrower impacted by COVID-19 for a forbearance plan.
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Expanded forbearance plan terms for borrowers impacted by COVID-19.
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Updated requirements, when evaluating the borrower for a payment deferral or mortgage loan modification after a forbearance plan.
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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.
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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:
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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.
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MPF Government loans and MPF Government MBS loans, must follow policies and guidance issued by the applicable Government Agencies.
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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.
- References:
- MPF Announcement 2020-18