To help ensure liquidity in the secondary mortgage market, the
These transactions must be undertaken via auction or similar mechanism, and eligible collateral is limited to agency MBS.
The agency also said it would allow Fannie and Freddie to exercise greater flexibility with respect to appraisal requirements and employment verification requirements for mortgage transactions through
Specifically, FHFA said it would allow the GSEs to 'leverage appraisal alternatives to reduce the need for appraisers to inspect the interior of a home for eligible mortgages.' In addition, FHFA said the GSEs may obtain employment verification via an email from an employer, a recent year-to-date paystub from the borrower or a recent bank statement showing payroll deposit in the event that a verbal verification of employment cannot be obtained.
FHFA also announced that
These are the latest steps taken by FHFA to ensure the flow of liquidity and operational efficiency through the market during the coronavirus pandemic. Last week, the agency announced a 60-day suspension of foreclosures and evictions and forbearance options for borrowers experiencing financial difficulties due to the pandemic.
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