Search Posts
Recent Posts
- Multifamily Fundamentals Expected to Stabilize By Q2 February 12, 2021
- Building permits dipped 23 percent in L.A. during final months of 2020 February 12, 2021
- Fannie Mae reports rising confidence in housing market February 12, 2021
- 5 million missed rent or mortgage payments in December February 12, 2021
- Apartment Developers Increasing Unit Sizes For New Projects In Response To Pandemic February 12, 2021
Categories
Subscribe!
Thanks for subscribing! Please check your email for further instructions.
The Rollins Group LA
Fannie Mae and Freddie Mac will keep buying loans in forbearance through Sept. 30
Previous deadline was August 31
August 26, 2020, 5:49 pm By Sarah Wheeler
The Federal Housing Finance Agency announced on Wednesday that Fannie Mae and Freddie Mac would continue to buy qualified loans in forbearance until Sept. 30, extending the previous deadline of Aug. 31.
The GSEs will also extend other loan flexibilities initiated during the pandemic, including accepting alternative appraisals on purchase and rate term refinance loans, alternative methods for documenting income and verifying employment before closing, and expanding the use of power of attorney to assist with loan closings.
“Extending these COVID-19 flexibilities helps keep the mortgage market moving and borrowers safe during the pandemic,†said FHFA Director Mark Calabria.
The move was applauded by various mortgage industry groups.
“MBA and its members appreciate FHFA and the GSEs extending these important features,†said MBA President and CEO Bob Broeksmit. “Both the origination flexibilities and the program to purchase loans in forbearance are providing important stability to the mortgage market during the pandemic, and today’s announcement will enable lenders to continue to make low rate mortgage financing readily available to consumers and avoid the inevitable credit tightening that would have resulted from their expiration.â€
Fannie Mae and Freddie Mac began buying loans in forbearance in April. The number of loans in forbearance has fallen to 7.2% of total mortgage loans, the MBA reported on Monday, meaning about 3.6 million homeowners are in forbearance plans.