Fannie Mae issued Servicing Guide Announcement SVC-2025-02 (Announcement), setting forth updates to the Servicing Guide. Per the Announcement, Fannie Mae clarified how to calculate the remaining mortgage loan term when determining the Fannie Mae Flex Modification terms if the borrower has made additional principal payments (referred to as principal curtailment). If the borrower previously made additional principal payments, the servicer must first calculate the remaining mortgage loan term based on the interest-bearing portion of the borrower’s pre-modification unpaid principal balance and the contractual P&I payment amount. Note that, this may result in a post-modification maturity date that precedes the pre-modification maturity date. The updated policy must be implemented no later than August 1, 2025 (servicers are, however, encouraged to begin implement the policy immediately.)
Click to view the Fannie Mae Servicing Guide Announcement SVC-2025-02: https://www.tenaco.com/wp-content/uploads/2025/05/Fannie-Mae-Servicing-Guide-Announcement-SVC-2025-02-04-09-25.pdf
