FHFA Issues Guidance on Processing of Fannie Mae and Freddie Mac Loans

As part of its response to the COVID-19 crisis, on March 31, 2020, FHFA announced it is allowing certain flexibilities in processing of Fannie Mae and Freddie Mac loans to assist customers in expediting closings and to keep all people involved in the process of loan origination safe during the crisis. 

Specifically, the flexibilities announced are:

• “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.”