Lender Letter LL-2023-04 – Payment Deferral, Disaster Payment Deferral, and Other Updates
(Updated August 9, 2023) This Lender Letter provides an update to the standard payment deferral workout option. Key changes include allowing the deferral of at least two and up to six months of past due principal and interest (P&I) payments, including escrow and servicing advances paid to third parties. The borrower may not defer more than 12 months of cumulative past-due P&I payments over the life of the loan. Servicers may implement these changes starting July 1 but must implement by Oct. 1.