FHFA Extends Loan Processing Flexibilities for Fannie Mae and Freddie Mac Customers

May 6, 2020 |

(From FHFA Public Affairs News) – The Federal Housing Finance Agency (FHFA) extended several loan origination flexibilities currently offered by Fannie Mae and Freddie Mac designed to help borrowers during the COVID-19 national emergency. Those flexibilities are extended until at least June 30 and include:

  • Alternative appraisals on purchase and rate term refinance loans;
  • Alternative methods for verifying employment before loan closing;
  • Flexibility for borrowers to provide documentation (rather than requiring an inspection) to allow renovation disbursements (draws); and
  • Expanding the use of power of attorney and remote online notarizations to assist with loan closings.​

“These loan origination flexibilities will continue to facilitate loan closings and go a long way to keeping the market functioning effectively during this national emergency,” said Mark Calabria, FHFA Director. “Today’s actions also keep homebuyers, sellers, and appraisers safe.”