FHFA to Extend Some Loan Origination Flexibilities

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 May 31 several previously announced loan origination flexibilities for customers of Fannie Mae and Freddie Mac. These flexibilities include alternative appraisals on purchase and rate term refinance loans. FHFA said that due to low usage, it expects to retire all temporary selling flexibilities on May 31.

FHFA is allowing some little-used temporary flexibilities to expire as scheduled on April 30 including alternative methods for verifying employment, condominium project reviews, and expanded power of attorney.