Fannie Mae and Freddie Mac New and Updated Guidance in Response to COVID-19

Fannie Mae issued Lender Letters 2020-03 and 2020-04 and Freddie Mac issued Bulletin 2020-8 to provide new and updated guidance due to the ongoing COVID-19 outbreak.

The more restrictive guidance applies to loans with an application dated (not submission date) on or after April 14, 2020 through May 17, 2020.

Less restrictive guidance may be applied to new submissions and to loans currently in the pipeline

The guidance detailed below applies to both Fannie Mae and Freddie Mac transactions

Age of Documents

  • All income and asset documentation must be dated no later than 60 days prior to the Note date (currently 120 days) except as noted below; standard age of document requirements continue to apply:
    • Asset accounts that receive a quarterly statement, the most recently issued quarterly statement is acceptable
    • Military income documented on a Leave and Earnings Statement
    • Retirement income
    • Social Security Supplemental Security Income (SSI)
    • Survivor and dependent benefit income
    • Long-term disability income
    • Foster-care income
    • Royalty payments
    • Trust income (fixed) – Freddie Mac only
  • Income verification obtained from the Work Number is subject to:
    • Applications dated on or after April 14, 2020 to May 18, 2020: The vendor’s report “current as of date