Hit the comment section if we're missing anything and we'll get it updated to keep this as an up-to-date list of COVID-related changes to underwriting guidelines, forbearances, etc. The changes come at the direction of FHFA and are thus substantially similar for both agencies. To keep things simple, we're listing one bullet point for both agencies. Click on the agency link to see specific details directly from the agency.
- VERIFICATION OF EMPLOYMENT (VOE) can be complete via email, paystub, or bank statement
- APPRAISALS may be "desktop appraisals" or "exterior only" if there is sufficient property info available. Lenders encouraged to accept appraisal waivers (PIW's)
- DETAILED FAQ
- Homeowners who are adversely impacted can contact their mortgage servicer
- Foreclosure sales and evictions of borrowers are suspended for 60 days
- Homeowners may be eligible for a forbearance plan to reduce or suspend their mortgage payments for up to 12 months
- Negative Credit bureau reporting is suspended for eligible forbearances
- Homeowners in a forbearance plan will not incur late fees
- After forbearance, a servicer must work with the borrower on a permanent plan to help maintain or reduce monthly payment amounts as necessary, including a loan modification
- FHFA is announcing that Fannie Mae and Freddie Mac (the Enterprises) will offer multifamily property owners mortgage forbearance with the condition that they suspend all evictions for renters unable to pay rent due to the impact of coronavirus.
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Cash-out refinances |
"No cash-out" refinances |
|
Property type |
Maximum total LTV (TLTV) ratio |
|
|
Primary Residence |
≤70% |
≤90% |
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Second home |
≤60% |
≤90% |
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Permissible appraisal requirements |
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Mortgage purpose |
LTV ratio |
Occupancy type |
Ownership of Mortgage being refinanced |
Permissible appraisals |
|
Purchase transaction* |
Up to 97% |
Primary Residence |
N/A |
Interior and exterior inspection appraisal, desktop appraisal or exterior-only appraisal |
|
<85% |
Second homes and Investment Properties |
N/A |
Interior and exterior inspection appraisal, desktop appraisal or exterior-only appraisal |
|
|
>85% |
Second homes |
N/A |
Interior and exterior inspection appraisal |
|
|
No cash-out refinance |
As permitted in the Guide |
All |
Mortgage being refinanced owned by Freddie Mac |
Interior and exterior inspection appraisal or exterior-only inspection |
|
Mortgage being refinanced not owned by Freddie Mac |
Interior and exterior inspection appraisal |
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|
Cash-out refinance |
As permitted in the Guide |
All |
Mortgage being refinanced owned or not owned by Freddie Mac |
Interior and exterior inspection appraisal |
Desktop Appraisal Matrix - Fannie
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Property type |
Acceptable appraisal form |
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1-unit property, including a unit in a Planned Unit Development (PUD) or a Detached Condominium Unit |
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Condominium Unit |
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Cooperative Unit |
Fannie Mae Form 2090, Individual Cooperative Interest Appraisal Report |
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2- to 4-unit property |
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Manufactured Home |
Exterior-Only Appraisal Matrix- Fannie
|
Property type |
Acceptable appraisal form |
|
1-unit property, including a unit in a Planned Unit Development (PUD) or a Detached Condominium Unit |
Guide Form 2055, Exterior-Only Inspection Residential Appraisal Report |
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Attached Condominium Unit |
Form 466, Exterior-Only Inspection Individual Condominium Unit Appraisal Report |
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Cooperative Unit |
Fannie Mae Form 2095, Exterior Only Individual Cooperative Interest Appraisal Report |
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2- to 4-unit property |
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|
Manufactured Home |
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