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FHFA Authorizes Loan Processing Flexibilities for Fannie Mae and Freddie Mac Customers



Washington, DC – The Federal Housing Finance Agency (FHFA) today announced several loan processing flexibilities from Fannie Mae and Freddie Mac (The Enterprises) designed to help their customers. The flexibilities announced by the Enterprises 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 the use of power of attorney and remote online notarizations.

"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.



Questions/Answers from other AE/GAD reps...

I'm starting to see the "might and if" posts concerning the Mortgage Forbearance aspect of the recently passed COVID-19 aid package. One statement was "IF you ask for 3 months forbearance, you MIGHT have to pay 4 months at once. (ie. April, May and June forbearance. July you would owe 4 months of mortgage payments.)

The borrower must contact their lender and specifically request the forebearance.

Some of the lenders will put the amount owed at the end of the loan at the end of the forebearance period. The credit reporting will not show any negative reporting.

But, it depends on the lender and what type of loan the borrower has. I have heard that there are some lenders that will require the full forebearance amount due at the end of the period. It is very important that the borrower contact their lender.

FHA, Fannie Mae and Freddie Mac, which back about 65% of all mortgages outstanding, are all offering forbearance on the mortgages they back and "extend mods" where the missed payments are added to the end of the payment term, so that not lump sum is owed. Private loans that are held by banks or put into private mortgage backed securities are not as clear. You should reach out to your servicer and request an extend or extension mod as well as forbearance. With regard to the credit impact, all servicers should be using industry standard codes if a forbearance is granted. This code notes that it is an agreed upon forbearance (while in the forbearence period) and no credit impact to the consumer.


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