The Federal Housing Finance Agency (FHFA) announced Freddie Mac and Fannie Mae will extend temporary loan flexibilities until April 30, 2021. They were originally set to expire on March 31, 2021.
“Certain temporary flexibilities including employment verification, condominium project reviews, and expanded power of attorney, are expected to be retired on April 30,” the agency stated in a release. “As health and safety conditions improve, FHFA will actively monitor mortgage market participants’ use of all temporary measures and retire those that are no longer needed or not extensively used.”
The extended temporary flexibilities include:
- Alternative appraisals on purchase and rate term refinance loans.
- Alternative methods for documenting income and verifying employments before loan closing.
- Expanding the use of power of attorney to assist with loan closings.
Once the final extension for the power of attorney and verbal verifications of employment expires, applications will be subject to the standard Selling Guide policies.