Fannie Mae Flood and Servicing Updates
Fannie Mae Flood Coverage Calculator
Fannie Mae has released a calculator tool for lenders to use in determining the minimum amount of flood insurance coverage requires by Fannie Mae. The calculator can be used for 1-4 unit properties, PUDs, detached and attached condominiums, as well as co-ops.
Fannie Mae Lender Letter LL 2021-12
The most recent Fannie Mae update included Lender Letter 2021-12 which provides notice to servicers of changes to the Fannie Mae investor reporting process beginning in September 2021. The changes outlined in the letter include the following:
- Reimbursement of gross servicing fee and guaranty fee for mortgage loans with a payment deferral;
- Elimination of servicer’s advance payment of UPB at foreclosure;
- Streamlined investor reporting with self-service capabilities;
- 2022 cash simplification changes; and
- Guaranty fee relief after four month’s delinquency.