MPF Announcement 2020-03

MPF Xtra Selling Guide Updates

Effective Date: As noted for each topic

On February 5, 2020 Fannie Mae issued Selling Guide Announcement SEL-2020-01 which covered the below referenced topics that are applicable to loans sold under the MPF Xtra product:

• Clarified rental housing payment policy to reflect that the borrower’s rental housing payment should be included as an additional liability in the DTI ratio when the subject transaction is a second home, investment property or includes a non-occupant co-borrower. (effective for new loans submitted to DU on or after June 1, 2020, and for manually underwritten loans with application dates on or after June 1, 2020.)

• Delayed effective date until further notice for new policy for calculating monthly real estate tax payments. (effective immediately)

• Clarified that  HomeReady income limits  only apply to a loan with a resale restriction if the loan is delivered under the HomeReady product. (effective immediately)

• Corrected rental income requirements to reflect that the new requirements for determining when rental income can be used for qualifying purposes applies to both refinance and purchase transactions. (effective for new loans submitted to DU on or after April 1, 2020, and for manually underwritten loans with application dates on or after April 1, 2020.)

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 Announcement and any applicable Fannie Mae Selling Guide chapters, forms, or exhibits noted in the announcements.