Fannie Mae announced updates to Lender Letter 2021-07, updating the requirements related to performing an escrow analysis to clarify that servicers must spread any escrow shortage repayment amount identified in the subsequent annual study after a COVID-19 payment deferral or a Flex Modification by the reduced eligibility criteria for COVID-impacted borrowers over either the remaining escrow shortage repayment period or another period of up to 60 months.
