Fannie Mae released Lender Letter 02-06 on 4/19/06 with instructions to servicers regarding the Opt-in Agreement for the Mississippi Development Authority's Homeowner Assistance Program.

Fannie Mae is committed to working with the State of Mississippi and the MDA to help homeowners in communities impacted by Hurricane Katrina.  Fannie Mae is encouraging servicers of Fannie Mae-owned or -securitized mortgages to execute an Opt-In Agreement.

Fannie Mae states, "Servicers that opt in have our consent to subordinate our lien to the required covenant and will have no liability to Fannie Mae for the consequences of such subordination. If a servicer decides not to sign an Opt-In Agreement, Fannie Mae requests that the servicer nonetheless execute a subordination agreement if requested to do so by a homeowner."

To read the full lender letter please click on the following link:

Fannie Mae Lender Letter 02-06