The Federal Housing Financing Authority announced today steps that reduce the need for appraisals and employment verification. The FHFA said the moves are being taken to keep the real estate markets keep going.
The FHFA announcement directed Fannie Mae and Freddie Mac to “provide alternative flexibilities to satisfy appraisal requirements and employment verification requirements through May 17, 2020.”
Also, according to the FHFA announcement, in the event lenders cannot obtain verbal verification of the borrower's employment before loan closing, Fannie Mae and Freddie Mac 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. Lenders should continue to use sound underwriting judgment to ensure these alternatives are appropriate to the borrower's circumstances.
Read more about the FHFA and the coronavirus response.