The Federal Housing Finance Agency announced the extension of Fannie Mae’s and Freddie Mac’s (the Enterprises’) loan origination flexibilities until Jan. 31, 2021.
These flexibilities are the same that were previously extended to Dec. 31, 2021.
The extended flexibilities relate to alternative appraisals on purchase and rate term refinance loans; alternative methods for documenting income and verifying employment before loan closing; and expanding the use of power of attorney to assist with loan closings.
Other than the new expiration date, which is subject to additional extensions, no additional updates were made to these flexibilities. Fannie Mae also included a reminder that loans in forbearance because of COVID-19 with note dates no later than Dec. 31, 2020 may be delivered to the Enterprise through Feb. 28, 2021, and that date will not be subject to further extensions.