The Federal Housing Finance Agency (FHFA) announced the extension of several policies and programs aimed at curbing the effects of the pandemic on households, lenders and mortgage servicers. Temporary loan flexibilities, originally set to expire on Feb. 28, will be extended through March 31. The temporary policies include alternative appraisal options, alternative methods for income and employment verification and the expanded use of power of attorney in loan closings.
FHFA also announced that Fannie Mae and Freddie Mac borrowers in a COVID-19 forbearance plan as of Feb. 28 will be eligible for an additional forbearance extension of up to three months. COVID-19 Payment Deferrals may now cover up to 15 months of missed mortgage payments. “To keep families in their home during the pandemic, FHFA is allowing borrowers to be in COVID-19 forbearance for up to 15 months and extending the Enterprises’ foreclosure and eviction extension,” said FHFA Director Mark Calabria.
The moratorium on single-family foreclosures of Fannie Mae and Freddie Mac borrowers and evictions of residents of real estate owned properties was also extended from its previous expiration of Feb. 28 to March 31.