Effective with loans purchased on or after May 1, 2020, ServiSolutions is announcing the following updates regarding conventional loans that enter forbearance after purchase.
As announced in Fannie Mae Letter LL-2020-06 and Freddie Mac Bulletin 2020-12, all eligible loans that enter into forbearance after the ServiSolutions purchase date but prior to loan being delivered to the agency will be assessed an agency LLPA of:
- 500 basis points (5.00%) for first time home buyers
- 700 basis points (7.00%) for all other transactions
*Note: The LLPAs are in addition to all other applicable LLPAs and will be billed after purchase of the loan.
In addition:
- Lenders will be billed $1,000 administrative fee for each conventional or government loan that enters forbearance within 60 days of purchase by ServiSolutions.
- Alternatively, lenders may opt to repurchase the loan from ServiSolutions. Lenders will be required to repurchase the first and second DPA mortgage and reimburse any SRP paid on the loan at time of purchase.
As a reminder, loans that are currently in forbearance or enter into forbearance prior to purchase are not eligible for purchase by ServiSolutions.
All lenders must have a process in place to actively track and monitor requests for a forbearance plan/mortgage relief option. In addition, each lender must notify ServiSolutions of requests made on loans submitted for purchase. A Lender Forbearance Attestation is required for all loans submitted for purchase.
All lender representations, warranties and covenants as defined in the Mortgage Origination and Sale Agreement remain in effect.
If you have questions about this information, please contact Lisa Treece at
ltreece@ahfa.com
.
