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31 Journal FHA, FHFA ANNOUNCE EXTENDED ASSISTANCE FOR HOMEOWNERS e Federal Housing Finance Agency (FHFA) announced that the GSEs—Fannie Mae and Freddie Mac—will extend several loan origination flexibilities until August 31. ese flexibilities were set to expire on July 31, 2020. Extended flexibilities include: » Alternative appraisals on purchase and rate term refinance loans; » Alternative methods for documenting income and verifying employment before loan closing; and » Expanding the use of power of attorney and remote online notarizations to assist with loan closings. Additionally, the Federal Housing Administration (FHA) announced several options for homeowners whose COVID-19 forbearance is coming to an end. FHA clarified that none of its home retention options in the waterfall of solutions require a borrower to submit their missed payments immediately in a lump sum. e administration also clarified that servicers may not charge fees or penalties for any payments missed during a COVID-19-related forbearance. Homeowners who were current or less than 30-days past due on their loans at the start of March and entered forbearance during the COVID-19 emergency may qualify for one of four home retention plans under the new options. e first option is the COVID-19 National Emergency Standalone Partial Claim. is compiles all unpaid payments into a junior lien, which can be up to 30% of the total unpaid principal balance of the mortgage loan. is lien is to be paid at the end of the mortgage—when a homeowner sells or refinances their home. e second option is the COVID-19 Owner-Occupant Loan Modification, which revises the rate and term of the existing mortgage loan. If a borrower is not eligible for either of the first two options, the COVID-19 Combination Partial Claim and Loan Modification help homeowners by allowing a partial claim up to 30% of the unpaid principal balance and a mortgage modification to address the remaining unpaid balance. Lastly, for borrowers who cannot be helped through the first three options in the waterfall, the COVID-19 FHA HAMP Combination Loan Modification, and Partial Claim offers modification with reduced documentation requirements. ese options are all available for owner- occupied FHA-insured loans. For FHA- insured loans that are not owner-occupied, the FHA will offer another loan modification option. "is comprehensive set of measures will help virtually every homeowner who has requested COVID-19 forbearance," Acting Federal Housing Commissioner Len Wolfson said. "It also provides servicers with the tailored and streamlined capabilities they need to provide assistance to homeowners as quickly and as efficiently as possible." "Providing more solutions now to save homes in the future is part of the Administration's unprecedented response to the crisis and will contribute to the larger economic recovery already underway," HUD Secretary Ben Carson said.