Legal Alert

Fannie Mae and Freddie Mac Extend Origination Flexibilities Due to COVID-19

by Richard J. Andreano, Jr.
March 12, 2021

In coordination with the Federal Housing Finance Agency on March 11, 2021, Fannie Mae in updates to Lender Letter 2021-03 and Lender Letter 2021-04 and Freddie Mac in Bulletin 2021-10 extended certain loan origination flexibilities due to COVID-19 from March 31, 2021 to April 30, 2021.

The flexibilities relate to alternative appraisals on purchase and rate and term refinance loans, alternative methods for documenting income and verifying employment before closing, and the expanded use of powers of attorney to assist with loan closings.

However, both Fannie Mae and Freddie Mac advise that this is the final extension of the employment verification and powers of attorney flexibilities. 

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