Freddie Mac recently announced, in Bulletin 2021-10, that it is further extending certain temporary flexibilities related to COVID-19 for mortgages with application dates through April 30, 2021. The Bulletin also announced that this would be the final extension of three types of temporary flexibilities.
Specifically, the following flexibilities were extended for mortgages with application dates through April 30, 2021; however, mortgages with application dates on or after May 1, 2021, must comply with the applicable Guide requirements:
- Use of alternative documentation for 10-day pre-closing verification of employed income, as originally announced in Bulletin 2020-5;
- Condominium Project review flexibilities announced in Bulletin 2020-11, which increases certain maximum loan-to-value ratios for Freddie Mac owned “no cash-out” refinance Condominium Unit Mortgages secured by primary residences; and
- Power of Attorney flexibilities which, in certain circumstances, allows the use of a power attorney document when the borrower is unable to execute initial loan documents or closing documents.
The Bulletin also announced that the following temporary flexibilities are extended for mortgages with application dates through April 30, 2021, but did not note that this was the final extension for these flexibilities:
- Appraisal and GreenCHOICE Mortgage flexibilities announced in Bulletins 2020-5, 2020-8 and 2020-11; and
- Completion report flexibilities announced in Bulletin 2020-5.
All five areas of temporary flexibilities remain unchanged from previous extensions issued by Freddie Mac. The Bulletin only updated the effective dates.
The Bulletin noted that Freddie Mac had updated its COVID-19 Selling FAQs in light of these updates and to provide additional guidance.