On August 26, the Federal Housing Finance Agency announced an extension of its policies providing for Fannie Mae and Freddie Mac (the “GSEs") to continue to purchase loans that have entered a COVID-related forbearance prior to purchase. The GSEs’ policies were set to expire August 31. The announcement extended the policies to September 30. The policy extensions also include processing flexibilities allowed as a result of the pandemic, such as alternative methods for documenting income and verifying employment. You can view the FHFA announcement at their website.
Additionally August 27th, HUD and the GSEs announced an extension of their moratoria on foreclosures until December 31. These were previously set to expire August 31 as well. Extension of the GSE moratorium will “protect more than 28 million homeowners with an Enterprise-backed mortgage,” said FHFA Director Mark Calabria. The Department of Veterans Affairs announced a similar extension on August 24.
In addition to the FHFA extension of processing flexibilities related to COVID, USDA also recently announced an extension of “Temporary Exceptions in relation to COVID-19 pandemic” that include exceptions for appraisal and inspection requirements and verifications. USDA also announced an extension of its moratorium on foreclosures similar to HUD and the GSEs. You can find coronavirus related information from USDA on their website.
