The Key to Reducing Post-Refi Boom Borrower Churn

In this webinar, PRMG Chief Lending Officer Kevin Peranio will help attendees sort through the right technologies as he shares the tech investments that have had the biggest impact on his business.

Tracey Velt breaks down the latest RealTrends 500 rankings

During the episode, Velt highlights which brokerages achieved top rankings in both categories for 2020, and shares what stood out to her the most about the rankings.

Navigating Closing Struggles in 2021’s Purchase Market

Join this webinar to discover the most current information on hybrid and full eNote eClosings and discuss key criteria to successfully implementing your eClosing strategy.

About 7M refi candidates missed the “forever rate” boat

Rates jumped to 3.17% last week and Black Knight reported that there are now just 11.1 million “high quality” refi candidates. The smallest number of potential refi candidates in a year.

Politics & MoneyMortgage

FHFA extends relaxed appraisal, lending standards

Extends COVID flexibilities to Feb. 28, 2021

The Federal Housing Finance Agency (FHFA) announced on Thursday it has extended relaxed lending and appraisal standards put in place due to COVID-19 another month for both Fannie Mae and Freddie Mac.

The flexibilities surrounding alternative verifications of employment and appraisals were originally set to expire on Jan. 31, 2021, however, the government entity is now pushing that back to at least Feb. 28, 2021.

According to the release, the extended flexibilities include-

  • Alternative appraisals on purchase and rate term refinance loans;
  • Alternative methods for documenting income and verifying employment before loan closing; and
  • Expanding the use of power of attorney to assist with loan closings.

At the brink of the pandemic in March, the FHFA began directing both the GSE’s to ease their standards for property appraisals and verification of employment given the “extraordinary circumstances.”

In a letter sent by Fannie, the Enterprise cited many lenders were unable to obtain an appraisal based on a full interior and exterior inspection of the subject property as the virus continued to spread.


How the mortgage industry is working together to make housing more affordable

The issue of housing affordability has no one solution, but with collaboration across the entire housing industry, together we can create more opportunity for more people to achieve sustainable, long-term homeownership.

Presented by: Fannie Mae

In turn, the FHFA supervised the GSEs to begin using both drive-by appraisals and desktop appraisals in certain circumstances to ensure that the mortgage process was not held up due to appraisal issues.

Those alternative appraisals may become long-term solutions, as the FHFA released a Request for Input (RFI) through February that highlights specifically the benefits and pitfalls of hybrid appraisals, updating the Uniform Appraisal Dataset (UAD) and an increased use of appraisal waivers. As a result of their initial push in March, the Urban Institute reported a 14% increase overall in appraisal waivers, which contributed to an increase in refinance activity.

Beyond that, the FHFA noted that employment verification was becoming increasingly more difficult as many businesses had either shut down entirely or were running with limited crews. To that end, the GSEs will accept alternative forms of employment verification, including a recent paystub, to ensure lending can continue.

Specifically, the FHFA states that “in the event lenders cannot obtain verbal verification of the borrower’s employment before loan closing, the Enterprises will allow lenders to obtain verification via an e-mail from the employer, a recent year-to-date paystub from the borrower, or a bank statement showing a recent payroll deposit.”

As always, the FHFA said it will continue to monitor the coronavirus situation and update policies as needed.

As of Jan. 14, the CDC has reported over 1.7 million news cases of the virus in the past seven days, though much of the recovery will rely on the dispersing of the vaccine.

Leave a comment

Most Popular Articles

Millions will enter housing market in 2021: Zillow

Up to 2.5 million households could enter the housing market in 2021, per Zillow. The buyers will descend on the “secondary cities” across the U.S.

Apr 07, 2021 By

Latest Articles

William Raveis ain’t no stinkin’ iBuyer

Like others, resi brokerage & lender William Raveis is happy to buy your home. But its new program doesn’t mean it’s an iBuyer.

Apr 09, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please