MPF Announcement 2020-80
MPF Origination and Underwriting Policy Updates
Effective Date: January 1, 2021
Maximum Original Loan Amount—MPF Traditional Selling Guide Chapter 2.1 & MPF Government MBS Selling Guide Chapter 2.2*
The maximum original loan amounts for conventional mortgages has increased for 2021.
|
Number of Units |
Contiguous US, DC and Puerto Rico Loan Limits |
|
1 |
$548,250 |
|
2 |
$702,000 |
|
3 |
$848,500 |
|
4 |
$1,054,500 |
|
Number of Units |
Alaska, Hawaii and Virgin Islands |
|
1 |
$822,375 |
|
2 |
$1,053,000 |
|
3 |
$1,272,750 |
|
4 |
$1,581,750 |
*The maximum total loan limits for MPF Government MBS Mortgage Loans are net of any financed mortgage insurance premium or funding fee as reflected on the Note.
Maximum Original Loan Amount—MPF Xtra Selling Guide Chapter 2.1
Originators must comply with the Fannie Mae Selling Guide regarding loan limits. For additional information, see the enclosed Fannie Mae Lender Letter LL-2020-14: Confirmation of Conventional Loan Limits for 2021.
We have published an updated version of MPF Selling Guide Exhibit N, Conventional High-Cost Area Loan Limits, to reflect the increased loan limits.
The new loan limits are effective for loans with Funding Dates (i.e. the date the MPF Bank deposits funds into the PFI’s account for the Mortgage Loan) on or after January 1, 2021.
If a loan exceeds the 2020 loan limits and has a Funding Date before January 1, 2021, it must be delivered under a high-balance Delivery Commitment. A Delivery Commitment for a loan that meets the 2021 conforming limits may be opened during 2020, provided that the Funding Date for that loan is on or after January 1, 2021. (Ex: A Delivery Commitment with a loan amount of $540,000 may be opened in December 2020 as long as the loan’s Funding Date is on or after January 1, 2021. If that same loan has a Funding Date before January 1, 2021, then it must be delivered under a high-balance Delivery Commitment).
Allowable Points and Fees—MPF Program Guide
Chapter 7.6.1 and Selling Guide Exhibit N
The Consumer Financial Protection Bureau (CFPB) has increased the loan amount thresholds and dollar amount caps that apply under the ability-to-repay and safe harbor qualified mortgage rules.
The following loan amount thresholds and points and fees caps apply to all conventional and government mortgages secured by a primary residence or second home with a loan application date on or after January 1, 2021. The “total points and fees” and “total loan amount” must be calculated in accordance with Regulation Z (12 CFR § 1026.32).
|
Loan Amount 1 |
% Cap of the Total Loan Amount 1 |
|
>= $110,260 |
3% |
|
>= $22,052 and < $66,156 |
5% |
|
< $13,783 |
8% |
|
Loan Amount 1 |
Dollar Amount Cap |
|
>= $66,156 and <$110,260 |
$3,308 |
|
>=$13,783 and <$22,502 |
$1,103 |
1 For the loan amount categories with percentage caps, the PFI must apply the applicable percentage cap to the “total loan amount,” which may be less than the “loan amount.” (See Regulation Z, 12 CFR § 1026.43, for the term “loan amount,” and Regulation Z, CFR § 1026.32, for the term “total loan amount.”)
