MPF Xtra Selling Guide Updates
Effective Date: Effective Immediately (unless noted otherwise)
On August 7, 2019 Fannie Mae issued Selling Guide Announcement SEL-2019-07 which covered the below referenced topics that are applicable to loans sold under the MPF Xtra product:
- Updated the Quality Control requirements by making the following changes that may be implement immediately,but must be implemented by January 1, 2020:
- added requirements to the QC vendor reporting timeframes and the statistical sampling methodology.
- provided guidance related to the independence of the QC function and the QC staff.
- added new flexibilities related to reverifying Social Security retirement income and military income.
- Introduced construction- to-permanent transactions for manufactured homes. Originators may now use construction-to-permanent single-closing or two-closing financing options when originating manufactured home loans.
- Clarified appraisal waiver eligibility for refinance transactions.
- Removed all references to DU Refi Plus /Refi Plus options due to the products being retired.
As previously mentioned in MPF Announcement 2019-38, all of the mortgage insurance flexibilities available for DU Refi Plus and Refi Plus apply only to mortgage loans with application dates on or before December 31, 2018, and loans must be delivered into the program no later than September 1, 2019.
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.