MPF Announcement 2021-21

Update to MPF Program Guide- Expiration of Points and Fees Cure Under Qualified Mortgage Rule

Effective Date: Immediately (unless otherwise noted)

On January 10, 2021, the points and fees cure provision of the Truth In Lending Act/Regulation Z expired.  This means that mortgage loans consummated on or after January 10, 2021, with points and fees that exceed the applicable limits cannot be cured and will no longer be eligible for delivery under the MPF Program.  Any such loan discovered to have been delivered into the MPF Program will be subject to repurchase.  Chapter 7.5.1.3 of the MPF Program Guide has been updated to reflect this change. 

Mortgage loans consummated before January 10, 2021 with points and fees that exceed the applicable limits, which have been cured pursuant to TILA/Regulation Z will remain eligible under the MPF Program.