Legal Alert

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

by the Mortgage Banking Group
October 20, 2020

On October 19, 2020, Fannie Mae in updates to Lender Letter 2020-03 and Lender Letter 2020-04, as well as Freddie Mac in Bulletin 2020-40, extended certain loan origination flexibilities due to COVID-19 from October 31, 2020, to November 30, 2020. 

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.

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