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

The Federal Housing Finance Agency (FHFA) has extended several loan origination flexibilities currently offered by Fannie Mae and Freddie Mac (The Enterprises) 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 FHFA Director Mark Calabria. “Today’s actions also keep homebuyers, sellers, and appraisers safe.”