The Federal Housing Finance Agency this week said that Fannie Mae and Freddie Mac will extend some temporary loan origination flexibilities until May 31, 2021. 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 be extended through May 31, 2021, according to the FHFA. 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, while, due to low usage of the temporary flexibilities, FHFA 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,” an FHFA press release stated. “Low usage of the flexibilities make the temporary flexibilities no longer mandatory to ensure efficient market function.”
Homeowners and renters can visit consumerfinance.gov/housing for up-to-date information on relief options, protections and key deadlines.