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FHFA extends GSE’s loan origination flexibilities
The Federal Housing Finance Agency (FHFA) announced Friday that the government-sponsored enterprises (GSEs) - Fannie Mae and Freddie Mac - will extend several loan origination flexibilities until Dec. 31, 2020 to ensure continued support for borrowers amid the ongoing coronavirus pandemic.
The flexibilities which were previously set to expire Nov. 30, include:
- alternative appraisals on purchase and rate term refinance loan;
- alternative methods for documenting income and verifying employment before loan closing; and
- expanding the use of power of attorney to assist with loan closings.
View the full release. Fannie Mae and Freddie Mac have pages devoted to coronavirus resources and guidance available online. Earlier this week, the FHFA also extended its temporary policy allowing the government-sponsored enterprises (GSEs) to purchase certain single-family mortgage loans in forbearance to Dec. 31, 2020.
The FHFA previously extended its moratorium on foreclosures and evictions through the end of the year. Additionally, the agency has indicated that it will continue to monitor the effect of the coronavirus on renters, borrowers, and the mortgage market and update policies as needed.
NAFCU will continue to monitor the FHFA's efforts to support liquidity in the mortgage market and work with the agency to ensure credit unions' concerns are addressed.