FHFA also announced that qualifying borrowers with Fannie Mae and Freddie Mac mortgages who are reaching the end of the 12-month maximum forbearance term under the CARES Act can receive an additional forbearance extension of up to three months, providing for up to 15 months of missed payments.
Fannie Mae addresses the foreclosure moratorium extension and forbearance term extension in an update to Lender Letter 2021-02, and Freddie Mac addresses the foreclosure moratorium extension and forbearance term extension in Bulletin 2021-6. With regard to the foreclosure moratorium, both Fannie Mae and Freddie Mac advise that the moratorium does not apply to properties determined to be vacant or abandoned. With regard to the forbearance term extension, both Fannie Mae and Freddie Mac advise that the servicer must establish a Qualified Right Party Contact to evaluate the borrower for an extension. Freddie Mac also addresses revisions to the COVID-19 payment deferral, and Fannie Mae does so in Lender Letter 2021-07.
On February 10, 2021, FHFA announced the extension of COVID-19-related loan origination flexibilities from February 28, 2021, to March 31, 2021. The flexibilities relate to alternative appraisals on purchase and certain refinance loans, alternative methods for verifying employment before closing, and the expanded use of powers of attorney to assist with loan closings. Fannie Mae addresses the extension in updates to Lender Letter 2021-03 and Lender Letter 2021-04. Freddie Mac addresses the extension in Bulletin 2021-7.
Copyright © 2021 by Ballard Spahr LLP.
(No claim to original U.S. government material.)
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.
This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.