Expanded Power of Attorney Use to Expire April 30

April 22, 2021

While the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will extend some temporary loan origination flexibilities until May 31, the expanded use of powers of attorney will expire at the end of April.

In addition to expanded power of attorney, temporary flexibilities related to employment verification and condominium project reviews will also expire April 30.

Alternative appraisals on purchase and rate-term refinance loans are among the flexibilities that will now be extended through May 31, 2021.

Due to low usage of the temporary flexibilities, FHFA expects to retire all temporary selling flexibilities on May 31.

Throughout the COVID-19 pandemic, FHFA has actively monitored the pandemic's impact on mortgage market participants' use of the temporary selling policies. Low usage of the flexibilities make the temporary flexibilities no longer mandatory to ensure efficient market function.

Contact ALTA at 202-296-3671 or [email protected].