On March 24, Advantage MPP published Bulletin 03-20 Temporary Underwriting Allowance.
The text of the bulletin can be read below.
FHLBank Indianapolis recognizes the impact the COVID‐19 pandemic is having on borrowers as well as loan originators’ ability to meet all underwriting guidelines. Specifically, social distancing measures may interfere with the ability to complete full appraisals and/or employment verifications. To enable our members to close loans intended for delivery to FHLBank Indianapolis, Advantage MPP is adhering to the temporary underwriting allowances as prescribed by Fannie Mae and Freddie Mac as they pertain to appraisals and employment verification.
For guidance in these areas, please refer to the Fannie Mae and Freddie Mac guidance, which can be found at the following links:
Relief for Borrowers
As reiteration of information provided in MPP Bulletin 02-20 issued March 20, 2020, servicers are required to:
- Suspend all foreclosure sales and evictions for the next 60 days (with the exception of properties that have been determined to be vacant or abandoned);
- Suspend any negative credit reporting for borrowers under loss mitigation agreements related to COVID-19; and
- Waive all late fees for all borrowers under loss mitigation agreements related to COVID-19.
As a reminder, FHLBank Indianapolis does not preclude loan closings completed with electronic signatures with the exception of the security instrument (Mortgage or Deed of Trust) and the note. At this time, both the security instrument and the note require original ‘wet’ signatures.