If a borrower contacts a servicer indicating they are impacted by COVID-19, the servicer must determine if the borrower has experienced an eligible hardship (for example, unemployment, reduction in regular work hours, or illness of a borrower/co-borrower or dependent family member). See Page 2 of the Mortgage Assistance Application (Form 710) for a list of eligible hardships.
For example, if a borrower is ill or quarantined and unable to work and, as a result, experiences a reduction in income that impacts the borrower’s ability to make their monthly mortgage payment, the borrower may be eligible for one of our existing workout options (in accordance with our workout hierarchy). For this situation, a forbearance plan may be an ideal workout option to consider.
Additionally, with Lender Letter LL-2020-02, Impact of COVID-19 on Servicing, we are extending the availability of the post-disaster mortgage loan modifications to borrowers impacted by COVID-19. For the borrower to be eligible for one of these post-forbearance mortgage loan modifications, the borrower must have experienced a hardship resulting from COVID-19 (for example, unemployment, reduction in regular work hours, or illness of a borrower/co-borrower or dependent family member) which has impacted their ability to make their monthly mortgage loan payment. For one of these mortgage loan modifications, the mortgage loan must have been current or less than 31 days delinquent as of March 13, 2020, the date of the National Emergency declaration relating to COVID-19.
For more information, see Lender Letter LL-2020-02, Impact of COVID-19 on Servicing and to Lender Letter 2017-09R, Fannie Mae Extend Modification for Disaster Relief and Other Clarifications for Mortgage Loans Impacted by Disaster Events.
This FAQ is from the Fannie Mae COVID-19 Frequently Asked Questions.
See below for more information on COVID-19:
- The full list of Fannie Mae’s COVID-19 Frequently Asked Questions: https://singlefamily.fanniemae.com/media/22361/display
- Fannie Mae’s COVID-19 page: https://www.fanniemae.com/portal/covid-19.html
- The Impact of COVID-19 on Servicing: https://singlefamily.fanniemae.com/servicing#servicing-promo
Fannie Mae Servicing Lender Letter LL 2020 02: https://singlefamily.fanniemae.com/media/22261/display