Credit Risk Transfer - News

Clarification that COVID-19 Pandemic Is a Casualty Event under LSS 2017-PMT1 Transaction

For the LSS 2017-PMT1 fixed severity transaction, a mortgage obligation that was in a forbearance period due to a casualty event (such as a natural disaster, fire, or theft) at the time it became a recourse event mortgage obligation will become a reversed recourse event mortgage obligation if the loan has a payment status reported as current at the conclusion of its forbearance period (or up to three months thereafter if necessary).

Fannie Mae has agreed that a mortgage obligation that is in a forbearance period due to COVID-19 will be treated as a casualty event under the LSS 2017-PMT1 transaction.