"Fannie Mae and Freddie Mac are waiving some requirements for lenders due to the potential inability to confirm income, reserves, tax, and Social Security information from borrowers amid the slowdown in government operations. Their guidance will remain in effect until operations are fully resumed. Freddie said it will continue to monitor the situation and may revise or revoke guidance if the shutdown extends for a prolonged period, according to a Bulletin signed by Kevin Kauffman, senior vice president of single-family seller engagement."
"Fannie Mae reminded lenders that the shutdown does not relieve them of obligations under laws such as the ability to repay standards in the Truth in Lending Act. The GSEs are waiving the typical 30-day limit for paystubs, instead requiring the most recent year-to-date earnings statement prior to the shutdown. They are also allowing lenders to waive verification of employment if they provide documentation of their efforts and confirm the borrower is employed."
Fannie Mae and Freddie Mac issued temporary flexibilities for mortgage lenders because government shutdowns may prevent confirmation of income, reserves, tax, and Social Security data. The waivers remain in effect until federal operations fully resume, with Freddie noting it may revise or revoke guidance if the shutdown persists. Lenders retain obligations under laws such as the Truth in Lending Act ability-to-repay standards. Paystub limits are relaxed to allow the most recent year-to-date earnings statement prior to the shutdown, and verification of employment may be waived with documented efforts and confirmation of employment. Reserve verification rules increase for applications dated Nov. 3 or later, and borrowers must still sign Form 4506-C with IRS documentation possibly required if tax returns are unavailable.
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