Impact of COVID-19 on Originations of MPF Xtra Loans
Effective Date: Immediately (unless otherwise noted)
On May 28, 2020, Fannie Mae issued an update to Lender Letter LL-2020-03 and Lender Letter LL-2020-04, communicating updates to temporary policies previously announced. The policies in this Lender Letter are effective immediately and are effective until Fannie Mae provides further notice, unless otherwise stated.
Additions to Fannie Mae Lender Letter LL-2020-03 - Impact of COVID-19 on Originations:
- Added additional documentation requirements for Borrowers using self-employment income to qualify to support the Originators decision that self-employment income meets Fannie Mae’s requirements.
Effective: Originators are encouraged to apply these requirements to existing loans in process; however, they must be applied to loans with application dates on or after June 11, 2020 until further notice.
Updates to Fannie Mae Lender Letter LL-2020-04 - Impact of COVID-19 on Appraisals
- Added additional resources providing links to COVID-19 resources, such as prior selling and servicing lender letters and FAQs.
Other topics mentioned in the Fannie Mae announcement do not apply to MPF Xtra. PFIs and Servicers of MPF XTRA must follow the relief policies and guidance issued by Fannie Mae, including the announcements below and by visiting Fannie Mae’s COVID-19 webpage.
In addition, 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.
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.