On Apr. 9, Fannie issued servicing guide update for flex modification.
Fannie issued Servicing guide announcement SVC-2025-02 on calculating the remaining mortgage loan term in connection with a Fannie Mae Flex Modification.
Servicing Updates
Clarified how to calculate remaining mortgage loan term when determining the Fannie Mae Flex Modification terms if the borrower has made additional principal payments.
Servicer must first calculate remaining mortgage loan term based on interest bearing portion of borrower’s premodification UPB, contractual P and I payment amount.
May result in a post modification maturity date that precedes pre-modification maturity date; updated contact for submission of RD guarantee claim advice letters, requests.
For Fannie Mae approval of the agreement revisions related to RD mortgage loans.
Updated contact for submission of rural development (RD) guarantee claim advice letters, requests for Fannie approval of agreement revisions for RD mortgage loans.
Effectiveness
Servicers are encouraged to implement change immediately but must by Aug. 1, 2025.
