WBK Industry News - Federal Regulatory Developments

Fannie Mae Extends COVID-19 Flexibilities into 2021

Fannie Mae recently updated two Lender Letters, LL-2020-03 and LL-2020-04, to further extend certain temporary policies related to COVID-19. 

LL-2020-03 addresses temporary COVID-19 measures related to origination.  This most recent update to LL-2020-03 extends Fannie Mae’s existing temporary flexibilities related to verbal verifications of employment and powers of attorney, which will now continue in effect for loans with application dates on or before January 31, 2021.  Previously, the applicable application deadline was December 31, 2020.

Similarly, with LL-2020-04, which generally addresses COVID-19 implications for appraisals, Fannie Mae extended the temporary appraisal flexibilities to loans with application dates on or before January 31, 2021 (from December 31, 2020). 

WBK previously reported on the guidance in LL-2020-03 and LL-2020-04 here and here.