Mortgage giant Fannie Mae extended its relaxed lending and appraisal standards put in place due to COVID-19 into the new year. The flexibilities surrounding verbal verification of employment and appraisals were originally set to expire on Dec. 31, 2020. Fannie Mae is now pushing that back to at least Jan. 31, 2021.
“We are extending the temporary flexibilities related to verbal verifications of employment and power of attorney to loans with application dates on or before Jan. 31, 2021 from Dec. 31, 2020,” Fannie Mae said in a letter to lenders.
In a separate letter, Fannie Mae made the same announcement for flexibilities surrounding appraisals.