Servicing Policy Communications

Access a list of Servicing Announcements, Lender Letters and Notices to stay current on Fannie Mae's latest servicing policy updates.

Announcement SVC-2020-07 – Servicing Guide Update	December 9, 2020-The December Servicing Guide update removes the property-level earthquake insurance requirement on mortgage loans on all Puerto Rico properties, and on Guam properties constructed of masonry. It also incorporates the payment deferral policy communicated in LL-2020-05, the incentive fees for retention workout options as outlined in LL-2020-09, and updates to accurately reflect the guaranty fee and guaranty fee buydown charges drafting schedule.
Lender Letter LL-2020-02 – Impact of COVID-19 on Servicing	December 9, 2020-This Lender Letter communicates temporary policies to enable servicers to better assist borrowers impacted by COVID-19.
Lender Letter LL-2020-07 – COVID-19 Payment Deferral	November 18, 2020-This Lender Letter provides a new workout solution to help borrowers impacted by a COVID-19 hardship return their mortgage to current status after up to 12 months of missed payments.
Announcement SVC-2020-06 – Servicing Guide Update	November 10, 2020-The November Servicing Guide updates reflect disaster payment deferral changes previously announced in the Evaluation Notices and payment deferral agreement. We’ve also updated some terminology for consistency.
Lender Letter LL-2020-13 – Automatic Reclassification of Delinquent MBS Mortgage Loans	October 28, 2020-This Lender Letter provides servicers advance notice of upcoming changes related to the criteria for automatic reclassification of MBS mortgage loans, guaranty advances and reimbursement of principal and interest advances.
Servicing Notice - Extension of Cost of Funds Index	October 21, 2020-Earlier this year, the Federal Home Loan Bank of San Francisco (FHLBank) announced that it will extend its deadline for discontinuing its monthly cost of funds index (COFI) from early 2021 to early 2022. FHLBank will no longer calculate the index after the publication of the Dec. 2021 COFI in Jan.2022. This Servicer Notice provides additional detail.
Announcement SVC-2020-05 – Servicing Guide Update	October 14, 2020-As part of the October Servicing Guide update, the Valuation Management System (VMS) Valuation Order Template has been updated to require the foreclosure sale date be completed when a servicer is requesting the property valuation for bidding instructions. Additionally, we’ve revised the Evaluation Notices and the payment deferral agreement to incorporate clarifications regarding Home Affordable Mortgage Program (HAMP) incentives. The Evaluation Notices also include revisions based on recent policy updates.
Lender Letter LL-2020-05 – Payment Deferral	October 14, 2020-This Lender Letter introduces payment deferral, a new home retention workout option that enables servicers to assist eligible borrowers who have resolved a temporary hardship and resumed their monthly contractual payments but cannot afford either a full reinstatement or repayment plan to bring the loan current.
Announcement SVC-2020-04 – Servicing Guide Update	September 9, 2020-(Republished November 10, 2020) September’s Servicing Guide update revises the allowable foreclosure attorney fees for Hawaii, incorporates disaster payment deferral policy and references to payment deferral throughout the Guide, updates the authority to offer an initial forbearance plan of up to three months without achieving quality right party contact (QPRC) in connection with a disaster event, and removes outdated references to Master Agreements.
Lender Letter LL-2020-11 – Disaster Payment Deferral	August 27, 2020-This Lender Letter introduces a new retention workout option to assist borrowers with a disaster-related hardship.
Announcement SVC-2020-03 – Servicing Guide Update	July 15, 2020-July’s Servicing Guide update simplifies our loss draft disbursement policies while balancing risk, revises post-disaster credit reporting requirements, authorizes servicers to not send a payment reminder notice to borrowers in an active forbearance plan, encourages servicers to make borrowers aware of our disaster recovery counseling services, and other miscellaneous updates.
Lender Letter LL-2020-08 – Servicer Principal and Interest Requirements Change	July 15, 2020-This Lender Letter aligns policies with Freddie Mac to limit servicer obligations to advance scheduled monthly payments to four months for scheduled/scheduled (S/S) remittance type mortgage loans and introduces a streamlined operational process that maintains our existing investor reporting requirements.
Lender Letter LL-2020-09 – Incentive Fees for Retention Workout Options	July 15, 2020-This Lender Letter introduces a new temporary structure for incentive fees for completed repayment plans, payment deferrals/COVID-19 payment deferrals, and Fannie Mae Flex Modifications.
Announcement SVC-2020-02 – Servicing Guide Update	June 10, 2020-The June Servicing Guide update includes changes to the pre-modification housing expense-to-income ratio calculation for imminent default and cash contribution, with updated instructions to servicers regarding escrow shortages that are part of the full monthly contractual payment, and an update to the Mortgage Assistance Application (Form 710).
Servicing Notice – Update to Retirement Date for HomeSaver Solutions Network Workout Functionality	May 20, 2020-In Servicing Notice, Advance Notice of Retirement of HomeSaver Solutions Network Workout Functionality (Oct. 30, 2019), we informed servicers that we will retire and transition the mortgage loan workout reporting and related functionality in the HomeSaver Solutions Network (HSSN) to Servicing Management Default Underwriter™ (SMDU), SMDU UI and SMDU Case Management for all workout reporting processes. In response to servicer feedback and as a result of the impact of COVID-19, we are postponing the Dec. 31, 2020 retirement date previously communicated in that Notice.
Announcement SVC-2020-01 – Servicing Guide Update	February 12, 2020-February’s Servicing Guide update revises the foreclosure milestone schedule, eliminates prorated foreclosure fee requirements, clarifies delinquency exception reporting, and more.