Fannie, Freddie get greater flexibility on appraisal and employment verification standards
March 23, 2020 Government & Community Affairs
The Federal Financing and Housing Agency (FHFA) announced today flexibility for issues surrounding appraisals and the verification of employment in light of the Corvid-19 pandemic. These alternatives allow Freddie Mac and Fannie Mae to have flexibility moving forward through May 17, 2020.
This flexibility is essential to allowing deals in the pipeline to close, and to maintain liquidity in the real estate market during this time.
This guidance came from the National Association of REALTORS working directly with FHFA to address concerns brought forward by members through local association, such as the Cape Cod & Islands Association of REALTORS (CCIAOR) and in communication with our local lending institutions.
FHFA is allowing lenders to leverage appraisal alternatives to reduce the need for appraisers to do traditional, on-site inspections for FHFA eligible mortgages, and will also allow lenders to obtain verification via email from a borrower’s employer confirming recent payments or bank statements to confirm payroll deposit.
CCIAOR has an ongoing communication with local lenders to help secure help for their needs - and this was an important one they indicated were holding up our members pending deals.. Advocacy on behalf of CCIAOR members and their clients helped underscore the importance of granting this flexibility to homeowners and homebuyers across the commonwealth.