Delivering MPF Xtra Loans in Forbearance Due to COVID-19
Effective Date: Immediately (unless otherwise noted)
On April 22, 2020, Fannie Mae issued Fannie Mae Lender Letter LL-2020-06: Selling Loans in Forbearance Due to COVID-19, providing liquidity options for certain loans that have been placed into forbearance after loan closing but prior to loan delivery.
Effective date: Loans in forbearance due to a COVID-19 hardship with note dates on or after Feb. 1, 2020 and on or before May 31, 2020 may be delivered as an MPF Xtra loan ONLY, beginning May 1, 2020. This does not apply to any other MPF products.
To be eligible for delivery, loans in forbearance due to a COVID-19 hardship must comply with the requirements provided for in the attached Lender Letter.
PFIs and Servicers of MPF XTRA must follow the relief policies and guidance issued by Fannie Mae by visiting Fannie Mae’s COVID-19 webpage.
To gain a full understanding of these topics, PFIs and Servicers should review the entire Fannie Mae Lender Letter plus any applicable Fannie Mae Guide chapters, forms, or exhibits noted in the announcement.
The provisions within this Lender Letter only apply to loans delivered under the MPF Xtra product and do not apply to MPF Traditional Conventional loans.
As a reminder, PFIs and Servicers originating, delivering or servicing:
- MPF Traditional (Conventional) loans must follow the policies and guidance recently issued by the MPF Program. Please visit the MPF Website to view recently published MPF Announcements.
- MPF Government loans and MPF Government MBS loans, must follow policies and guidance issued by the applicable Government Agencies.
- MPF Direct loans, must follow policies and guidance issued by the product’s investor, Redwood Trust.