18 January 2021
/ Larry R. Rothenberg
FHFA Extends Some COVID-Related Loan Flexibilities, But Not Foreclosure Moratorium (Yet)
On January 14, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will extend some loan origination flexibilities until February 28, 2021. Notably absent from the announcement is an extension of Fannie and Freddie’s moratorium on foreclosures of occupied single-family residences, which is scheduled to expire on January 31, 2021.
The announcement states that the extended flexibilities include:
- 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 powers of attorney to assist with loan closings.
The announcement directs borrowers having trouble paying their mortgage to visit the joint Department of Housing and Urban Development, FHFA, and the Consumer Financial Protection Bureau website.
Fannie Mae and Freddie Mac’s moratorium on foreclosures of occupied single-family residences was previously extended five times since it became effective on March 18, 2020, and remains scheduled to expire on January 31, 2021, subject to any further change.
This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
