FHFA Authorizes Loan Processing Flexibilities for GSE Customers; Extends Comment Period on Proposed Minimum Financial Eligibility Requirements

The Federal Housing Finance Agency this week announced several loan processing flexibilities from Fannie Mae and Freddie Mac designed to help their customers.

“These loan processing flexibilities will expedite loan closings and help keep homebuyers, sellers, and appraisers safe during this national emergency,” said FHFA Director Mark Calabria.

These flexibilities include:

–Allowing desktop appraisals on new construction loans;

–Allowing flexibility on demonstrating construction has been completed (alternative to the Completion Report);

–Allowing flexibility for borrowers to provide documentation (rather than requiring an inspection) to allow renovation disbursements (draws); and

–Expanding use of power of attorney and remote online notarizations.

Link to Fannie Mae announcement: https://www.fanniemae.com/portal/covid-19.html; Link to Freddie Mac announcement: https://guide.freddiemac.com/app/guide/bulletin/2020-8.

Additionally, FHFA announced a 30-day extension to the comment period for the proposed update to the minimum financial eligibility requirements for Fannie Mae and Freddie Mac Seller/Servicers. 

FHFA released the proposed update to the minimum financial requirements in January to further strengthen the Enterprises’ Seller/Servicer requirements and provide transparency and consistency of capital and liquidity required for Seller/Servicers with different business models. 

FHFA will receive input on these requirements through April 30 at ServicerEligibility@fhfa.gov. A link the Requirements and Frequently Asked Questions can be accessed at https://www.fhfa.gov/Media/PublicAffairs/Documents/Servicer-Eligibility-FAQs-1302020.pdf.Tags: