Fannie Mae No Longer Requires COVID-Related P&I Reserve Escrows

On May 26, 2021, Fannie Mae announced they will no longer require COVID-related P&I reserve escrows for Tier 2 and Tier 3 loans.

Student and Seniors business will remain Pre-Review and the reserves for those deals will be evaluated on a case-by-case basis by the Deal Teams. Fannie is allowing and delegating SRLs back to the lender.

Some exceptions may include: Seniors, Student, Dedicated Student and any other deal marketed to the Investor and rate locked as requiring P&I reserves. Reserves for these deals must be required in the Loan Docs and remain in place until after settlement.

For more information on Fannie Mae’s COVID update, please visit
About M&T Realty Capital Corporation
M&T Realty Capital Corporation® ( is a wholly-owned subsidiary of M&T Bank—one of the 20 largest US-headquartered commercial bank holding companies. As a full-service mortgage banking company, we specialize in providing competitive financing nationwide for commercial real estate. We are a fully accredited Fannie Mae DUS® lender, a Freddie Mac Optigo® lender, an approved FHA/HUD MAP and LEAN lender, and also offer life insurance company and CMBS financing through correspondent relationships.

Equal Housing Lender.
All loans and all terms referenced herein are subject to receipt of a complete application, credit approval, and other conditions.
“DUS®” is a registered trademark of Fannie Mae. “Optigo®” is a registered trademarks of Freddie Mac.
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