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The Federal Housing Finance Agency (FHFA) announced today that Fannie Mae and Freddie Mac will extend buying qualified loans in forbearance as well as several loan origination flexibilities.To support homeowners and mortgage lenders, the agency approved a continued extension of a temporary policy allowing for the purchase of certain single-family mortgages in forbearance, in circumstances that meet specific eligibility criteria set by Fannie Mae and Freddie Mac. The policy, formerly extended for loans originated through August 31, now is extended through September 30.
The GSEs also will continue to extend several loan origination flexibilities, first set to expire in a few days, until September 30. Said flexibilities include alternative appraisals on purchase and rate term refinance loans; alternative methods for documenting income and verifying employment before loan closing; and expanding the use of power of attorney and remote online notarizations to assist with loan closings.
“Extending these COVID-19 flexibilities helps keep the mortgage market moving and borrowers safe during the pandemic," said Director Mark Calabria.
To learn more about the following flexibilities, click through the corresponding links: buying qualified loans in forbearance; alternative appraisals on purchase and rate term refinance loans; alternative methods for documenting income and verifying employment before loan closing; and expanding the use of power of attorney to assist with loan closings.
