Freddie Mac Extends Temporary Flexibilities Related to COVID-19

Freddie Mac has re-extended several COVID-19 related “temporary flexibilities” for mortgages with application dates through March 31, 2021. The four areas of extended temporary flexibilities in Bulletin 2021-7 include the:

• Use of alternative documentation for 10-day pre-closing verification of employed income, as originally announced in Bulletin 2020-5;

• Appraisal and GreenCHOICE Mortgage flexibilities announced in Bulletins 2020-5, 2020-8 and 2020-11;

• Condominium Project review flexibilities announced in Bulletin 2020-11, which increases certain maximum loan-to-value ratios for Freddie Mac owned “no cash-out” refinance Condominium Unit Mortgages secured by primary residences; and

• Power of Attorney flexibilities which, in certain circumstances, allows the use of a power attorney document when the borrower is unable to execute initial loan documents or closing documents.

These four areas of temporary flexibilities remain unchanged from the previous extensions issued by Freddie Mac.