Your technical audit now is being judged fully for rankings as well as a lot of page speed issues.
Google just this week releases a new way of doing the page speed test and incorporated it You can read it from them. https://webmasters.googleblog.com/2020/05/evaluating-page-experience.html
They say take your time to adjust your sites. I don’t think that is sound advice, you should get moving and you should have been moving towards this before this notice. You are just now on notice that it is going to be even more important to have a technically sound site.