As part of its response to the COVID-19 crisis, on March 31, 2020, FHFA announced it is allowing certain flexibilities in processing of Fannie Mae and Freddie Mac loans to assist customers in expediting closings and to keep all people involved in the process of loan origination safe during the crisis.
Specifically, the flexibilities announced are:
- “Allowing desktop appraisals on new construction loans;”
- “Allowing flexibility on demonstrating construction has been completed (alternative to the Completion Report);”
- “Allowing flexibility for borrowers to provide documentation (rather than requiring an inspection) to allow renovation disbursements (draws); and”
- “Expanding the use of power of attorney and remote online notarizations.”
The announcement is available here.