In coordination with the Federal Housing Finance Agency on March 11, 2021, Fannie Mae in updates to Lender Letter 2021-03 and Lender Letter 2021-04 and Freddie Mac in Bulletin 2021-10 extended certain loan origination flexibilities due to COVID-19 from March 31, 2021 to April 30, 2021.

The flexibilities relate to alternative appraisals on purchase and rate and term refinance loans, alternative methods for documenting income and verifying employment before closing, and the expanded use of powers of attorney to assist with loan closings.

However, both Fannie Mae and Freddie Mac advise that this is the final extension of the employment verification and powers of attorney flexibilities.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mortgage Banking Group
Ballard Spahr LLP
1225 17th Street, Suite 2300
Denver
CO 80202-5596
UNITED STATES

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