Fannie Mae and Freddie Mac issued updated guidance to, among other things, extend temporary relief and requirements announced in prior bulletins and lender letters.
Fannie Mae’s Lender Letter 2020-04 includes extensions of the effective dates for the previously identified COVID-19 related flexibility measures (such as relaxed appraisal requirements) through August 31, 2020, and extends the inspection requirement flexibilities for draws for HomeStyle Renovation loans in process until further notice.
Freddie Mac’s Bulleting 2020-27 includes extensions of the effective dates for the following COVID-19 related requirements and flexibility measures through August 31, 2020:
- Credit underwriting requirements and guidance related to employment and income verification, as announced in Bulletins 2020-5 and 2020-8;
- Update to allow for 20 business days (instead of 10) prior to the note date to confirm that a self-employed borrower’s business is open and operating;
- Appraisal and GreenCHOICE Mortgage flexibilities announced in Bulletins 2020-5, 2020-8 and 2020-11;
- Condominium project flexibilities related to LTV/TLTV/HTLTV ratios and project documents announced in Bulletin 2020-11;
- Use of power of attorney to execute the initial loan documents and closing documents on the borrower’s behalf, as announced in Bulletin 2020-8; and
- Post-funding quality control flexibilities announced in Bulletins 2020-11 and 2020-23.