FHFA to Provide Additional Loan Origination Flexibility

As part of its ongoing effort to provide relief to mortgage borrowers during the coronavirus pandemic, the Federal Housing Finance Agency today announced that it would extend until at least June 30 several previously announced loan origination flexibilities for customers of Fannie Mae and Freddie Mac.

Specifically, FHFA said it would continue to offer alterative appraisals on purchase and rate term refinance loans, alternative methods for verifying employment before loan closing and flexibility for borrowers to provide documentation instead of an inspection to allow renovation disbursements. FHFA also said it would expand the use of power of attorney and remote online notarizations to facilitate loan closings.