FHFA extends Covid-19 origination flexibilities to August 31

Federal Issues Covid-19 FHFA GSE Fannie Mae Freddie Mac Mortgages Mortgage Origination

On July 9, the Federal Housing Finance Agency (FHFA) announced the extension of several loan origination flexibilities put in place to assist borrowers during the Covid-19 pandemic. Specifically, FHFA has extended until August 31, the following provisions: “(i) alternative appraisals on purchase and rate term refinance loans; (ii) alternative methods for documenting income and verifying employment before loan closing; and (iii) expanding the use of power of attorney and remote online notarizations to assist with loan closings.” The extensions are reflected in updates to Fannie Mae Lender Letters LL-2020-03 and LL 2020-04 and Freddie Mac Guide Bulletin 2020-27.