WASHINGTON—The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac will extend some temporary loan origination flexibilities until May 31, 2021. All temporary flexibilities were originally set to expire on April 30, 2021.
Alternative appraisals on purchase and rate-term refinance loans are among the flexibilities that will now be extended through May 31, 2021, the agency said.
Those temporary flexibilities related to employment verification, condominium project reviews, and expanded power of attorney are being allowed to expire as scheduled on April 30, 2021.
Due to low usage of the temporary flexibilities, FHFA said it expects to retire all temporary selling flexibilities on May 31, 2021.
“Throughout the COVID-19 pandemic, FHFA has actively monitored the pandemic's impact on mortgage market participants' use of the temporary selling policies. Low usage of the flexibilities make the temporary flexibilities no longer mandatory to ensure efficient market function,” the agency said.
Updates As Needed
The agency added that the actions are just the latest steps FHFA has taken to benefit renters, property owners and the mortgage market during the pandemic.
“FHFA will continue to monitor the coronavirus' impact on tenants, borrowers, and the mortgage market and update policies as needed,” the agency said.
Homeowners and renters can visit consumerfinance.gov/housing for up-to-date information on their relief options, protections, and key deadlines.