The Federal Housing Finance Agency today announced updates to several Fannie Mae and Freddie Mac policies that the agency said are intended to promote cost savings in the single-family mortgage market. The policy revisions came about after “robust engagement” with public- and private-sector stakeholders, FHFA said.
Among the policy revisions is expanded eligibility for appraisal waivers on purchase loans, FHFA said. Fannie and Freddie “will expand eligibility for appraisal waivers and inspection-based appraisal waivers, which leverage property data collected by a trained and vetted professional. This policy builds on the long-running success of appraisal waivers by allowing more borrowers, particularly first-time and low- to moderate-income borrowers, to benefit from cost savings and reduced closing times.”
Other updates include expanding the Uniform Appraisal Dataset to include Federal Housing Administration data and expanding eligibility for Freddie’s performing loan repurchase alternative pilot. Also, for loans delivered through the mortgage-backed security swap channel, there will be a new 60-day advance notice requirement for increases to Freddie and Fannie’s base guarantee fees greater than one basis point.
“Today’s announcements highlight actions that will better ensure the Enterprises are reliable sources of liquidity for lenders of all sizes and types, which in turn will promote access to sustainable credit for consumers,” FHFA Director Sandra Thompson said.
