FHFA Extends Purchases of Loans in Forbearance
The Federal Housing Finance Agency (FHFA) announced today that Fannie Mae and Freddie Mac (the Enterprises) will extend buying qualified loans in forbearance until Sept. 30, 2020. FHFA also extended the deadline for several loan origination flexibilities.
The flexibilities were set to expire on Aug. 31, 2020. NAHB had encouraged the FHFA to extend the deadline as a means to support borrowers during the COVID-19 national emergency.
"We commend the Trump administration and FHFA for extending the deadline,” said NAHB Chairman Chuck Fowke. "This decision provides much needed support for the residential construction industry and for countless American families."
The extension allows for the purchase of certain single-family mortgages in forbearance that meet specific eligibility criteria set by the enterprises, through Sept. 30.
In addition to the extension of purchases of qualified loans in forbearance, other flexibilities include: alternative methods for documenting income and verifying employment before loan closings; alternative appraisals on purchase and rate term refinance loans; and expanding the use of power of attorney to assist with loan closings.
"Extending these COVID-19 flexibilities helps keep the mortgage market moving and borrowers safe during the pandemic," said FHFA Director Mark Calabria.