MPF Traditional Selling Guide Updates
Effective: Immediately (unless otherwise noted)
Automated Validation Services for Mortgage Loans Underwritten with AUS
The MPF Traditional Selling Guide has been clarified to reflect the eligibility of loans delivered under the MPF Traditional product, where certain automated services approved by Fannie Mae and Freddie Mac to validate borrower income, employment, and asset data were used in conjunction with Fannie Mae’s Desktop Underwriter (DU) or Freddie Mac’s Loan Product Advisor (LPA). Please see Chapter 5.3 of the MPF Traditional Selling Guide to review this clarification.
Unlike Fannie Mae and Freddie Mac, the MPF Program does not provide any representation and warranty relief for loans where such services were used.
Credit Report Requirements for Mortgage or Rental Payment HistoryChapter 5.5.2 has been clarified to reflect that alternative credit references may be submitted in the event a borrower’s credit report does not reflect a 12
month mortgage or rental history.
Coverage Requirements – Private Flood Insurance Policies
Clarified Section 9.9.1 to indicate that the terms and amount of coverage of a Private Flood Insurance policy must be at least equal to that provided under an National Flood Insurance Program (NFIP) policy based on a review of the full policy issued by a private insurer.
- MPF Announcement 2019-36