FHFA Extends Temporary Policy Allowing Purchase of Certain Single-Family Mortgages Through August 31, 2020

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The Federal Housing Finance Agency (FHFA) recently announced that qualifying single-family mortgages originated through August 31, 2020, that are delinquent or in forbearance may be purchased by Fannie Mae and Freddie Mac (the GSEs).  In April 2020, FHFA created a temporary policy that allowed the GSEs to purchase single-family mortgages that are delinquent or in forbearance as long as they also met additional pricing criteria to mitigate the additional risk of loss.  The new update extends the temporary policy to cover loans that are originated through August 31, 2020, in an effort to increase liquidity and mitigate harms caused by the COVID-19 pandemic. 

In addition to extending the policy, FHFA stated that it would begin sharing data with the CFPB on mortgages that enter forbearance before being delivered to the GSEs as part of its obligations under the “QM Patch.”

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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