FHFA Extends Forbearance Flexibilities

first_img Previous: DS5: COVID-19’s Impact on Foreclosure Volumes Next: Redlining Results in 52% Less Home Value for Homeowners The Federal Housing Finance Agency (FHFA) has announced that it is extending several loan origination flexibilities currently offered by Fannie Mae and Freddie Mac (the Enterprises) designed to help borrowers during the COVID-19 national emergency, including the authority to purchase mortgages in forbearance, until at least July 31. Other flexibilities that have been extended include:Alternative appraisals on purchase and rate term refinance loansAlternative methods for verifying employment before loan closingExpanding the use of power of attorney and remote online notarizations to assist with loan closingsThe FHFA previously announced that Fannie Mae and Freddie Mac would be able to buy loans in forbearance, with note dates on or before June 30, as long as they are delivered by August 31 and have missed just one mortgage payment.The agency also announced that foreclosure and eviction moratoriums backed by Fannie Mae and Freddie Mac were extended to June 30. Deadlines for that moratorium were set to expire on May 17.The FHA announced that it would halt all new foreclosure actions and suspend all foreclosure actions currently in process, excluding legally vacant or abandoned properties. Also, the Administration will cease all evictions of persons from FHA-insured Single Family properties, excluding actions to evict occupants of legally vacant or abandoned properties.Additionally, borrowers are eligible to refinance or buy a new home if they are current on their mortgage—or in forbearance but continued to make payments or reinstated their mortgage. They are also eligible to refinance or buy a new home three months after their forbearance ends and they have made three consecutive payments under their repayment plan, deferral option, loan modification.Also, in an effort to provide additional financing options to single-family mortgage lenders, Fannie Mae’s ability to purchase single-family mortgages in forbearance has been extended to include loans with note dates on or before June 30, 2020, provided the loans are delivered by August 31 and no more than one mortgage payment has been missed. The previous policy was set to expire on May 31. FHFA Extends Forbearance Flexibilities Servicers Navigate the Post-Pandemic World 2 days ago June 11, 2020 1,644 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago FHFA Forbearance 2020-06-11 Seth Welborn in Daily Dose, Featured, Government, News The Best Markets For Residential Property Investors 2 days ago Related Articles Share Save Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. About Author: Seth Welborn  Print This Postcenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: FHFA Forbearance The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / FHFA Extends Forbearance Flexibilities Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days agolast_img

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