Fannie, Freddie Revise Coronavirus Servicing Guidance to Reflect CARES Act Changes

Fannie Mae and Freddie Mac have issued updates to their servicing guidelines for servicers working with borrowers affected by the coronavirus pandemic. The updates reflect changes from the recently enacted CARES Act.

Among other things, the new guidelines eliminate the requirement that servicers determine the occupancy status of a property; require servicers to suspend credit reporting when the hardship is related to COVID-19; and require that borrowers be provided an initial forbearance plan for a period of up to 180 days that may be extended for up to an additional 180 days at the borrower’s request