The Federal Housing Finance Agency (FHFA) announced Fannie Mae and Freddie Mac will extend some temporary loan origination flexibilities until May 31, 2021, while others will be allowed to expire as scheduled on April 30, 2021.
Temporary flexibilities related to employment verification, condominium project reviews, and expanded power of attorney will expire at the end of April.
Those related to alternative appraisals on purchase and rate-term refinance loans will continue until May 31, 2021. Because of low usage of these flexibilities, the agency said it expects all flexibilities will be retired on that date.
In Fannie Mae’s lender letter related to the flexibilities, the company said after May 31, lenders should follow all standard selling guide policies, with the exception of the HomeStyle Renovation seasoning policy. Fannie Mae will take HomeStyle Renovation loans for up to 12 months after the note date in accordance with a prior lender letter issued in March 2021.