Updates to the MPF Traditional Selling Guide
Effective Date: Immediately
Asset & Reserve Requirements
Clarified the policy for manually underwritten conventional Mortgage Loans with an LTV less than or equal to 80%, to indicate that PFIs are expected to determine the level of reserves to require based on overall risk assessment of the Mortgage Loan. If the LTV is greater than 80% then the PFI must meet the reserve requirements of the MI company.
See MPF Traditional Selling Guide section 5.18.2.
Manufactured Housing - Site Requirements
Updated the policy to no longer require that the land value be no greater than thirty five percent (35%) of the overall property value.
See MPF Traditional Selling Guide section 6.8.7.
Appraisal Requirements- Adjustments
Updated the appraisal requirements, to no longer require the following:
- the total gross adjustments for 2 of the 3 required comparables not exceed 25% of the sales price; and
- the individual line adjustments for 2 of the 3 required comparables not exceed 10% of the sales.
Clarified that the appraiser’s adjustments must reflect the market’s reaction to the difference in the properties. Incorporated a reminder that the number and/or amount of the dollar adjustments must not be the sole determinant in the acceptability of a comparable.
See MPF Traditional Selling Guide section 7.11.
The MPF Traditional Selling Guide template has been updated, with this update any typos/formatting issues have been corrected. Please note the contents of the MPF Traditional Selling Guide have not changed.
- MPF Announcement 2019-52