MPF Xtra Selling Guide UpdatesEffective Date: Immediately (unless otherwise noted)
On June 5, 2019 Fannie Mae issued multiple communications which cover the below referenced topics that are applicable to loans sold under the MPF Xtra product:
- Implemented the acceptability of Private Flood Insurance policies.
Fannie Mae Lender Letter LL-2019-06
- Updated the HomeReady eligibility requirements, effective July 20, 2019, the income limit requirements for all HomeReady loans cannot exceed 80% area median income for the property’s location, including properties in low-income census tracts.
- Updated the DU eligibility risk analysis and eligibility assessment. As a result, certain new loan casefiles submitted to DU on or after July 20, 2019 will receive an Ineligible recommendation when multiple high-risk factors are present.
Fannie Mae Selling Announcement SEL-2019-05
- Updated policies that reference specific IRS tax forms that have been updated as a result of the Tax Cuts and Jobs Act.
- Revised the policy for acceptable title insurers, including removing the requirement for prescriptive ratings.
- Removed the requirement that the initial Uniform Residential Loan Application (Form 1003) must be signed by the borrower and retained in the loan file, with certain exceptions.
Other topics mentioned in the Fannie Mae announcement do not apply to MPF Xtra. To gain a full understanding of these topics, PFIs should review the entire Fannie Mae Announcements on the following pages, and any applicable Fannie Mae Selling Guide chapters, forms, or exhibits noted in the announcements.
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