The servicer must complete (i.e., submit the case via Fannie Mae’s servicing solutions system) a disaster payment deferral in the same month in which it determines the borrower is eligible.
The servicer is authorized to use an additional month to allow for sufficient processing time (a “processing month”) to complete a disaster payment deferral. The servicer must treat all borrowers equally in applying the processing month, as evidenced by a written policy.
The servicer must send the disaster payment deferral agreement, or equivalent, to the borrower no later than five days after the completion of the disaster payment deferral.
While use of the disaster payment deferral agreement is optional, it reflects the minimum level of information that the servicer must communicate and illustrates a level of specificity that complies with the requirements of this Guide. Also, the servicer must ensure the disaster payment deferral agree complies with applicable law.
The servicer’s application of a disaster payment deferral to the mortgage loan must not impair Fannie Mae’s first lien position or enforceability against the borrower(s) in accordance with its terms.
The servicer must record the disaster payment deferral agreement if the servicer determines that recordation is required to comply with law and ensure that the mortgage loan retains its first lien position. The servicer must obtain a title endorsement or similar title insurance product issued by a title insurance company if the disaster payment deferral agreement will be recorded.
The servicer must also provide documents to the document custodian in accordance with the following table.
|If the disaster payment deferral agreement is...||Then the servicer must send...|
|not required to be signed by the borrower||a copy of the disaster payment deferral agreement signed by the servicer to the document custodian within 25 days of the effective date of the disaster payment deferral.|
|required to be signed by the borrower but not recorded||the fully executed original disaster payment deferral agreement to the document custodian within 25 days of the effective date of the disaster payment deferral.|
|required to be recorded||
For more information please see: D2-3.2-06: Disaster Payment Deferral