Skip to main content

FHFA Extends COVID-Related Loan Processing Flexibilities

Jul 09, 2020
FHFA headquarters
Senior Editor

The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will extend several loan origination flexibilities until August 31, 2020 to ensure continued support for borrowers during the COVID-19 national emergency. The flexibilities were set to expire on July 31, 2020. 
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 power of attorney and remote online notarizations to assist with loan closings.
There has been an impressive uptick in remote online notarizations (RONs) as well, and by all indications are here to stay.
"Legislators expedited RON legislation; governors enacted temporary orders allowing for RON and remote ink-signed notarizations (RIN) during COVID-19; underwriters adapted their guidelines to enable RON; and government-sponsored entities (GSEs) including Fannie Mae and Freddie Mac led the way in updating their requirements to allow for RON," according to a Qualia report. "Qualia’s survey data between March/April 2020 and May 2020 indicates growth in acceptance and usage of RON among title & escrow companies. Between Match/April and May, RON usage increased from 24% to 33%."
About the author
Senior Editor
Keith Griffin is a senior editor at NMP.
Jul 09, 2020
123 Newrez Employees Laid Off In Florida and Colorado

WARN Notices were filed the day after Computershare Mortgage Services, SLS acquisition closed.

May 07, 2024
Ishbia Predicts A Rate Cut By Election Day

CEO of United Wholesale Mortgage shares 'personal perspective' in new YouTube video

May 03, 2024
Yield Curve, Schmield Curve?

The yield curve is a harbinger, not the be-all, end-all for lenders.

May 02, 2024
UWM, UMortgage Under Attack For Alleged Shell Scheme

A report released on April 25 by the hedge-funded media company alleges UWM set up a shell company, UMortgage.

Apr 25, 2024
More Questions Than Answers At Housing Finance Climate Summit

Government officials, housing leaders, and climate scientists meet to address climate change's escalating impact on housing.

Apr 22, 2024
Maximum Acceleration, Originator Connect Network Sign Exclusive CE Agreement

Pact gives OCN guaranteed live CE at shows, creates nationwide opportunity for Maximum Acceleration

Apr 17, 2024