Fannie Mae recently updated Lender Letters 2020-03 and 2020-04 regarding existing temporary origination and appraisal policies and flexibilities issued in response to COVID-19. Fannie Mae also updated Lender Letter 2020-06 regarding selling loans in forbearance due to COVID-19.
The updates to LL-2020-03 extend the temporary flexibilities related to verbal verifications of employment and power of attorney to loans with application dates on or before December 31, 2020 (from November 30, 2020). The updates also impact requirements for borrowers using self-employment income to qualify by updating the requirement for depository account statements from two to three months of statements with an unaudited profit and loss statement. This guidance is effective for loan applications dated on and after December 14, 2020.
The update to LL-2020-04 extends the temporary appraisal flexibilities to loans with application dates on or before December 31, 2020 (from November 30, 2020).
Finally, the update to LL-2020-06 extends eligible note dates to December 31, 2020, and delivery to February 28, 2021, for sales of loans in forbearance due to the COVID-19 pandemic.