Fannie Mae and Freddie Mac extended certain loan origination flexibilities due to COVID-19 from November 30, 2020, to December 31, 2020. The changes occurred November 13, 2020, through Fannie Mae updates to Lender Letter 2020-03 and Lender Letter 2020-04 and Freddie Mac's Bulletin 2020-44.
The extension applies to loans with application dates on or before December 31, 2020. The flexibilities relate to alternative appraisals on purchase and rate and term refinance loans, alternative methods for documenting income and verifying employment before closing, and the expanded use of powers of attorney to assist with loan closings.
Additionally, Fannie Mae in an update to Lender Letter 2020-06 and Freddie Mac in Bulletin 2020-44 announced the extension of the purchase of eligible loans in a COVID-19 forbearance to those with note dates through December 31, 2020. They also updated the applicable delivery and settlement dates.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
