Fannie Mae and Freddie Mac Further Extend Origination Guidance Based on COVID-19

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On July 9, 2020, Fannie Mae in updates to Lender Letters 2020-03 and 2020-04 and Freddie Mac in Bulletin 2020-27 announced the further extension of origination guidance based on COVID-19 (the Freddie Mac action extends the guidance set forth in Bulletins 2020-5, 2020-8 and 2020-11). Previously, Fannie Mae and Freddie Mac announced the extension of the origination guidance to apply to applications received on or before July 31, 2020. The guidance now applies to applications received on or before August 31, 2020.

With regard to self-employed borrowers, Fannie Mae and Freddie Mac provide for further flexibility by permitting the confirmation that the business is open and operating to occur within 20 business days prior to the note date, instead of the previous 10 business day requirement. Fannie Mae also permits the confirmation to occur after closing, but prior to delivery.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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