Fannie, Freddie to Allow Desktop Appraisals on New Construction Loans
The Federal Housing Finance Agency (FHFA) has announced several loan processing flexibilities from Fannie Mae and Freddie Mac, including allowing desktop appraisals on new construction loans. Other flexibilities announced by Fannie Mae and Freddie Mac include:
- Allowing flexibility on demonstrating construction has been completed (alternative to the Completion Report).
- Allowing flexibility for borrowers to provide documentation (rather than requiring an inspection) to allow renovation disbursements (draws).
- Expanding the use of power of attorney and remote online notarizations.
“These loan processing flexibilities will expedite loan closings and help keep home buyers, sellers, and appraisers safe during this national emergency,” said FHFA Director Mark Calabria.
This information provided by NAHB Now, March 31, 2020.