Increased Flexibility to Buy and Sell During COVID–19
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Several organizations, such as Freddie Mac are doing all they can to help borrowers, lenders and investors who are dealing with the impacts of the novel coronavirus, known as COVID-19. Recently, they announced a number of relief measures designed to provide flexibility to borrowers facing a hardship in paying their mortgage.
Working with the Federal Housing Finance Agency (FHFA), Freddie Mac announced that it has taken action to make it easier for the mortgage industry to buy or sell a home. Specifically, in order for homes to be bought, sold and refinanced, Freddie Mac will provide flexibility in employment verification requirements and leverage appraisal alternatives for eligible mortgages to address challenges lenders and borrowers are facing due to COVID-19.
Details of actions taken include:
– Temporary changes to our credit underwriting requirements, which allows potential homebuyers to provide alternative documents in lieu of a 10-day preclosing employment verification. This includes obtaining verification via e-mail from an employer, a recent year-to-date paystub from the borrower or a bank statement showing a recent payroll deposit.
– Temporary changes to our property valuation requirements, allowing Freddie Mac to utilize appraisal alternatives to reduce the need for appraisers to inspect the interior of a home for eligible mortgages.
– An expansion of the Automated Collateral Evaluation eligibility, which allows appraisals for more borrowers.
– An extension of the deadline for certain annual reporting requirements.