MPF Announcement 2019-43

MPF Direct Selling Guide Updates

On July 8, 2019 the investor for the MPF Direct Product, Redwood Residential Acquisition Corporation, issued updates which resulted in the following revisions and clarifications to the MPF Direct Selling Guide:

Effective Date: Immediately (unless otherwise noted)

Collateral File

Chapter 1.7.3.2 has been clarified to indicate that if a Mortgage File contains mortgage loan documents that are required to be recorded and are pending recordation and have not yet been returned prior to delivering the file to the MPF Program, PFIs may provide a copy of the unrecorded document in the interim until a copy of the recorded original is received.  PFIs should not deliver unrecorded original documents to the Master Servicer.

MERS Loan Requirements (Effective August 1, 2019)

Chapter 1.7.5 has been updated to reflect that  loans with a borrower participating in a state sponsored confidentiality program may not be originated as a MOM loan or registered on the MERS system. An assignment to blank will be required on such loans.

Funding Process

Chapter 1.10.1 has been updated to include guidance for escrow disbursements that should be taken into account when calculating the total escrow during the funding process for each MPF Direct loan.

Escrow Account Maintenance

Added Chapter 1.11.1.1.1 which provides that it is the PFI’s responsibility to segregate and maintain borrower escrow accounts until the close of business on the servicing transfer date.