Updates and Clarifications for MPF Government MBS Selling Guide
Effective Date: Immediately
The following clarifications and updates have been made to the MPF Government MBS Selling Guide:
Major Disaster Policy Guide Update
In an effort to provide continued guidance to PFIs and Servicers, and to further provide assistance to those Borrowers affected by a Major Disaster, the MPF Program has updated the MPF Government MBS Selling Guide. In the past, when a Major Disaster occurred, PFIs and Servicers waited for MPF Announcements to provide guidance. With this Guide update, the guidance contained in those announcements is now incorporated into the MPF Government MBS Selling Guide, allowing PFIs to take immediate actions in assisting Borrowers affected by a Major Disaster. See MPF Government MBS Selling Guide Section 2.1.4.
Government Loan Streamline Refinance and Cash-Out Refinance
The eligibility requirements of Section 2.5 have been clarified to reflect the required amount of time that must pass between the initial loan being consummated and the refinance transaction.
Sections 4.1 and 4.1.1 of the Selling Guide have been updated to reflect that the Loan Presentment Request Form (OG3) must be completed and submitted electronically via the eMPF website or secure email to MPF-Help@fhlbc.com. The form will no longer be accepted via facsimile.
Establishing a Delivery Commitment
As previously announced in MPF Announcement 2018-53 the MPF Program has increased the current limit for which a Delivery Commitment (DC) may be executed on the eMPF website. PFIs can now execute DCs greater than $5 million dollars, but less than $10 million dollars. PFIs will still be required to call the MPF Service Center in order to take out DCs that are $10 million dollars and greater. Section 6.2 has been updated to reflect this increase.
Early Payment Default
Section 7.4.4 of the Selling Guide has been updated to clarify what constitutes an early payment default breach and clarified the applicability of the repurchase obligation.
- MPF Announcement 2019-15