Removing Barriers Blog

FHFA Extends Loan Processing Flexibilities for Fannie and Freddie Customers
Posted May 05, 2020 by dyi

The Federal Housing Finance Agency 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 30th 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.

The FHFA has previously announced actions aimed at facilitating liquidity in the mortgage market during the COVID-19 national emergency, including directing Fannie and Freddie to permit alternative flexibilities to satisfy appraisal requirements and employment verification requirements.