If a loan goes into forbearance on the sale date of the loan, does the lender owe the LLPA?
Yes. If the forbearance begins any time on the sale date of the loan, the LLPA is due to Fannie Mae. (See the Job Aid for how to self-report this action to us.) For whole loans, the sale date is the date that Fannie Mae sends funds via wire transfer to the lender. For MBS, the sale date is the date that Fannie Mae issues MBS securities to the lender or to the investor designated by lender (also known as the settlement date) and takes ownership of, and title to, the loan. See Receiving Sale Proceeds or Securities in the C1-2-01, General Information on Delivering Loan Data and Documents.
For more information, refer to the published Lender Letter LL-2020-06, Selling Loans in Forbearance Due to COVID-19.