In response to prior temporary guidelines, Fannie Mae has updated LL-2020-03 and LL-2020-04 to expand on the effective date of the temporary policies due to COVID-19. The following policies have been extended to June 30, 2020.
Lenders are reminded unemployment benefits may only be used for qualifying if the income is associated with seasonal employment. This does not extend to unemployment received as part of the CARE Act.
The income of a furloughed borrower is not eligible for use as a continued stable income for qualifying purposes.
Employment validation through Day 1 Certainty has been suspended temporarily.
All loans must be purchased or securitized no more than six months from the first payment date.