Fannie Mae issued Lender letter LL-2020-03: Impact of COVID-19 on Originations (Letter). The Letter sets forth temporary policy flexibilities with respect to:
- verbal verification of employment and self-employment;
- continuity of income;
- age of documentation;
- market-based assets;
- powers of attorney;
- remote online notarization;
- submission of financial statements and Lender Record Information (Form 582); and
- lender quality control requirements.
The Letter also includes reminders related to continuity of income, notes, electronic records, and signatures, title insurance, and business continuity plans.
Lenders are encouraged to apply the age of documentation, verification of self-employment and market-based asset updates to existing loans in process; however they must be applied to loans with application dates on or after April 14, 2020 through May 17, 2020. The temporary flexibilities related to powers of attorney, and verbal verification of employment, are effective immediately for all loans in process and will remain in place for loans with application dates on or before May 17, 2020. The lender quality control requirements are effective immediately for all loans in the process of a post-closing QC review and all loans selected for a post-closing QC review until June 2020 QC selections. The remote online notarization policy is effective immediately and will remain in effect until further notice. The deadline for submission of financial statements and Lender Record Information (Form 582) is extended to April 30, 2020.
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