FHFA Extends Buying Loans In Forbearance And COVID-Related Loan Processing Flexibilities

The Federal Housing Finance Agency revealed that Fannie Mae and Freddie Mac will extend purchasing qualified loans in forbearance along with a number of loan originations flexibilities until Sept. 30. The extension comes as the FHFA ensures its continued support for borrowers who have been impacted by the COVID-19 pandemic.

"Extending these COVID-19 flexibilities helps keep the mortgage market moving and borrowers safe during the pandemic," said Director Mark Calabria.

Other flexibilities addressed in this extension include alternative appraisals on purchase and rate term refinance loans, alternative methods for documenting income and verifying employment before closing on a loan and expanding the use of power of attorney to assist during the loan closing process.

Read more about the latest FHFA extensions.