Fannie Mae said that the standardization of servicing
standards that followed the 2008 housing crisis
appears to have helped the
industry manage the recent flood of COVID-19 forbearance plans. The company included
a series of questions about forbearance management in its September Lender
Sentiment Survey and has now released a special report on the responses. Servicers had to move quickly to implement the forbearance
programs, which were first announced by the GSEs Fannie Mae and Freddie Mac and
by FHA but were then expanded and mandated by Congress under the CARES Act.
They also had to manage the loans in forbearance, continue remittances to
investors, and make insurance and tax payments out of escrow accounts. As the plans
had three-month terms, borrowers had to be contacted to do renewals or to implement
loan modifications or other exit strategies.

 

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