FHFA Extends Loan Processing Flexibilities for GSE Customers; Offers Tools for Renter Protection
The Federal Housing Finance Agency extended several loan origination flexibilities currently offered by Fannie Mae and Freddie Mac designed to help borrowers during the COVID-19 pandemic.
FHFA also announced the government-sponsored enterprises have created online multifamily property lookup tools designed to assist renters in learning about eviction protections.
The loan flexibilities are extended until at least June 30 and include:
–Alternative appraisals on purchase and rate term refinance loans;
–Alternative methods for verifying employment before loan closing;
–Flexibility for borrowers to provide documentation (rather than requiring an inspection) to allow renovation disbursements (draws); and
–Expanding the use of power of attorney and remote online notarizations to assist with loan closings.
“These loan origination flexibilities will continue to facilitate loan closings and go a long way to keeping the market functioning effectively during this national emergency,” said FHFA Director Mark Calabria. “Today’s actions also keep homebuyers, sellers and appraisers safe.”
To help renters find out if they are protected from evictions during the COVID-19 national health emergency, FHFA announced Fannie Mae and Freddie Mac have created online multifamily property lookup tools.
These tools allow renters to find out if the multifamily property where they reside has an Enterprise-backed mortgage. Under the CARES Act, renters living in a property with an Enterprise-backed mortgage are covered by a temporary eviction moratorium. Landlords with Enterprise-backed mortgages can enter forbearance if their tenants cannot pay rent due to COVID-19 loss of income.
“Today’s tool protects renters and empowers them to find out if they live in a multifamily property covered by the eviction moratorium,” Calabria said. “Landlords with Enterprise-backed mortgages cannot evict tenants for failing to pay their rent if they are affected by COVID-19. Renters who can pay their rent should.”
FHFA said renters are still expected to pay their rent during the eviction moratorium period, if they can. Those experiencing financial hardship should reach out to their landlord to discuss their situation and potential solutions.
Renters living in multifamily properties with Enterprise-backed mortgages who need support should reach out to the Fannie Mae Helpline at 877-542-9723, if Fannie Mae backs their building’s mortgage, or the Freddie Mac Helpline at 800-404-3097, if Freddie Mac backs their building’s mortgage.
A link to the Fannie Mae Mutltifamily Loan Lookup Tool can be accessed here. A link to the Freddie Mac Multifamily Loan Lookup Tool can be accessed here.
