Legal Alert

Fannie Mae and Freddie Mac Announce Final Extension of Appraisal Flexibilities Due to COVID-19

By Richard J. Andreano, Jr.
April 21, 2021

In coordination with the Federal Housing Finance Agency (FHFA), on April 21, 2021, Fannie Mae in an update to Lender Letter 2021-04 and Freddie Mac in Bulletin 2021-15 announced the final extension of certain appraisal flexibilities due to COVID-19 for purchase and rate and term refinance loans from April 30, 2021 to May 31, 2021. As previously reported, the final extension of the origination flexibilities with regard to alternative methods for documenting income and verifying employment before closing, and the expanded use of powers of attorney to assist with loan closings, will apply to loans with application dates on or before April 30, 2021. 

FHFA noted that it did not plan to continue the flexibilities beyond May 31, 2021 “[d]ue to low usage of the temporary flexibilities.”

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