Originally published on March 11, 2021 by the Federal Housing Finance Agency (FHFA)
Washington, D.C. – The Federal Housing Finance Agency (FHFA) announced today that Fannie Mae and Freddie Mac (the Enterprises) will extend temporary loan origination flexibilities until April 30, 2021. The temporary flexibilities are designed to ensure continued support for borrowers during the COVID-19 pandemic. All temporary flexibilities were set to expire on March 31, 2021.
Originally published by the Federal Housing Finance Agency (FHFA) on February 25, 2021.
The Federal Housing Finance Agency announced on February 25 that it is extending until June 30 the moratoriums on single-family foreclosures and real estate-owned evictions due to the ongoing coronavirus pandemic. The agency also announced that borrowers with a mortgage backed by Fannie Mae or Freddie Mac can apply for another three-month extension of COVID-19 forbearance.
Originally published by Pete Schroeder on February 12, 2021 for Reuters.com.
WASHINGTON (Reuters) - The U.S. Federal Reserve on Friday unveiled the hypothetical recession it plans to test large banks against in its 2021 stress tests, which includes “substantial stress” in the commercial real estate and corporate debt markets.
The Federal Housing Administration announced Jan. 20 that it will allow individuals classified under the Deferred Action for Childhood Arrivals program who are legally permitted to work in the U.S. to apply for mortgages backed by the FHA. Borrowers must satisfy the same requirements as U.S. citizens to be eligible.
The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until February 28, 2021. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on January 31, 2021.
“To keep our communities safe, and families in their homes during the COVID-19 pandemic, FHFA is extending Fannie Mae and Freddie Mac's foreclosure and eviction moratorium," said Director Mark Calabria.
The Small Business Administration, in consultation with the Department of the Treasury, on Jan. 11 re-opened the Paycheck Protection Program for new borrowers and select current ones. The latest round of funding authorizes up to $284 billion for small business owners to aid in job retention for their employees and to assist with other expenses.
The U.S. Supreme Court on Dec. 18 declined to intervene or issue a further stay of the administrative proceedings brought by the Federal Trade Commission against the Louisiana Real Estate Appraisers Board, making it the first case concerning real estate appraisers to reach the Supreme Court in almost 60 years.
In its complaint, the FTC alleges that certain LREAB regulatory actions regarding appraisal management company payments of reasonable and customary fees to appraisers are anti-competitive and in violation of the Sherman Antitrust Act.
The Federal Housing Finance Agency (FHFA) issued a Request for Input (RFI) on appraisal-related policies, practices, and processes. The input received in response to the RFI will be used by FHFA to determine the necessary modifications needed to ensure Fannie Mae and Freddie Mac (the Enterprises) operate in a safe and sound manner.
“Modernizing the appraisal process has the potential to create a more streamlined and accurate collateral valuation process. But if modernization is not properly adopted, it could have negative unintended consequences," said Director Mark Calabria. “Today's RFI will improve FHFA's understanding of how the Enterprises can improve the appraisal process while at the same time ensuring they don't take on unintended or inappropriate levels of risk. The comments we receive will inform how we will modernize appraisals to improve both loan quality and the origination process."
The Federal Housing Administration on Dec. 2 announced that for 2021 its loan limit for high-cost areas and for Home Equity Conversion Mortgages for reverse mortgages will increase from $765,600 to $822,375, and the floor from $331,760 to $356,362. Current FHA regulations don’t allow HECM loans to vary by metropolitan statistical area or county.
Treasury Secretary Steven Mnuchin told the House Financial Services Committee Dec. 2 that Fannie Mae and Freddie Mac need “significant capital” to get out of conservatorship, but noted that no definitive plans have been made for the government-sponsored enterprises, HousingWire reported. The Federal Housing Finance Agency plans to stay its course even with the incoming Biden presidency.
In NAIOP’s sixth monthly survey tracking the effects of the pandemic on the commercial real estate industry, respondents reported continued gradual improvement in deal activity, but also reported more tenants seeking rent relief, particularly in the office sector.
The survey was completed by 203 NAIOP members between September 15 - 18, 2020. Respondents represent a range of professions, including developers, building owners, building managers, brokers, lenders and investors.
The Appraisal Institute sent a letter urging swift passage of the Portal for Appraisal Licensing Act of 2020 in the 116th Congress, which would amend the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to establish a portal for appraisal credentialing and AMC registration information, and for other purposes.
“Appraisers need help reducing their administrative burdens and servicing clients, particularly in a socially distant workplace where clients may be located in other states,” said Appraisal Institute President Jefferson L. Sherman, MAI, AI-GRS.
Now available! Last week's AI Answers features a discussion with Lyle Radke, director of collateral policy at Fannie Mae. We received information on a range of issues, including a partnership between AI and Fannie Mae on diversity in the appraisal profession, the strong performance of appraisers in the COVID-19 pandemic, and what's ahead for Fannie Mae for the remainder of the year.
The Federal Housing Finance Agency (FHFA) announced that it is seeking comments on a notice of proposed rulemaking that establishes a new regulatory capital framework for Fannie Mae and Freddie Mac (the Enterprises). The proposed rule is a re-proposal of the notice of proposed rulemaking published in July 2018. Comments will be due 60 days after the notice is published in the Federal Register.
The 2018 proposal remains the foundation of the re-proposal. The enhancements in the new proposal preserve the mortgage risk-sensitive framework of the 2018 proposal, while increasing the quantity and quality of the Enterprises' regulatory capital and reducing the pro-cyclicality of the aggregate capital requirements. Together, the enhancements in the re-proposal ensure each Enterprise's safety and soundness and its ability to fulfill its statutory mission across the economic cycle, in particular during periods of financial stress. The re-proposal is also a critical step toward responsibly ending the conservatorships.
Creditors have flexibility regarding when they must provide appraisals to mortgage applicants, according to an updated Q&A on the Equal Credit Opportunity Act Valuations Rule released April 29 by the Consumer Financial Protection Bureau. Under ordinary circumstance, creditors are required to provide appraisals promptly upon completion or three business days prior to consummation of a transaction.
President Trump on April 24 signed the Paycheck Protection Program and Health Care Enhancement Act, bipartisan legislation that provides $320 billion in additional funding for small businesses affected by the coronavirus pandemic. The Small Business Administration started accepting applications April 27, and already has approved more than 100,000 loans.
Mecklenburg County, the City of Charlotte and the six county towns, have agreed to follow the State of North Carolina’s Stay at Home Order starting April 30.
Mecklenburg County Manager Dena R. Diorio announced the agreement to the Board of County Commissioners at its public policy meeting Tuesday afternoon, one day before the county’s current order was set to expire.
See information slides from the April 23 Briefing.
Governor Roy Cooper issued Executive Order No. 135 extending North Carolina’s Stay At Home order through May 8. The orders extending closure of restaurants for dine-in service and bars and closure of other close-contact businesses are also extended through May 8.
By Ben Lane
Over the last several months, a number of the nation’s largest lenders and housing trade groups have called on the Consumer Financial Protection Bureau to make changes to the Ability to Repay/Qualified Mortgage rule.
