Overview

• The National Flood Insurance Program is paused, blocking new policies and renewals and delaying promised premium reductions such as those in Jefferson Parish.
• Fannie Mae and Freddie Mac temporarily waived some income, employment and documentation requirements, with flexibility on paystubs and reserves and guidance for servicers to offer forbearance.
• FHA will continue endorsing most loans except HECMs, Title I and loans to HUD employees, and Ginnie Mae says it will keep supporting mortgage-backed securities issuance.
• The Federal Reserve told lenders they may make loans without flood insurance during the lapse if they complete flood determinations, provide borrower notices and manage safety-and-soundness risks.
• Lenders report slower IRS and Social Security verifications and are prioritizing government-backed files, using technology workarounds and advising buyers to seek private flood coverage or extend escrow, with impacts noted in Florida and the Houston area.