Fannie Mae issued an update to Lender Letter LL-2021-03 to retire temporary COVID-19 related requirements for borrowers with self-employment income, provided the most recent federal income tax returns are not older than 2020. If a self-employed borrower’s most recent federal income tax returns are dated prior to 2020, lenders must continue to apply the temporary COVID-19 related requirements. Note that the temporary requirements for verification of self-employment continue to apply to all loans using self-employment income to qualify. Fannie Mae also removed all temporary COVID-19 related policies from the Lender Letter that had previously expired in 2020 and 2021. In addition, Fannie Mae removed guidance for furloughed borrowers. The updated Lender Letter is effective immediately.
Click to view the Fannie Mae Update to Lender Letter LL-2021-03: https://www.tenaco.com/wp-content/uploads/2022/02/Fannie-Mae-Update-to-Lender-Letter-LL-2021-03-02-02-22.pdf
