With the coronavirus pandemic firmly entrenched in much of the country, the Federal Housing Finance Agency announced Tuesday that it is extending flexible loan origination policies offered by Freddie Mac and Fannie Mae.
FHFA extended the policies through at least June 30. They include:
- Alternative appraisals on purchase and rate term refinance loans;
- Alternative methods for verifying employment before loan closing;
- Flexibility for borrowers to provide documentation (rather than requiring an inspection) to allow renovation disbursements (draws); and
- Expanding the use of power of attorney and remote online notarizations to assist with loan closings.
“These loan origination flexibilities will continue to facilitate loan closings and go a long way to keeping the market functioning effectively during this national emergency,” FHFA Director Mark Calabria said. “Today’s actions also keep homebuyers, sellers, and appraisers safe.”