MPF Xtra Servicing Guide Updates
Effective Date: Immediately (unless otherwise noted)
On June 10, 2020 Fannie Mae published Servicing Guide Announcement SVC-2020-02, Lender Letter LL-2020-05, and updates to Lender Letter LL-2020-09 issued respectively, which cover the below referenced topics that are applicable to loans serviced under the MPF Xtra product:
Fannie Mae Servicing Guide Announcement SVC-2020-02:
- Updated the Servicing Guide to require any escrow shortage currently included as part of the full monthly contractual payment should also be included as part of a Borrower’s pre-modification monthly housing expense when calculating the housing expense-to-income ratio. Effective: Servicers are encouraged to implement this change immediately, but must do so by September 1, 2020.
- Clarified delinquency status reporting requirements.
- The Borrower Certification and Agreement section of the Mortgage Assistance Application (Form 710) has been updated to accommodate the sharing of information covered by the Taxpayer First Act.
Fannie Mae Lender Letter LL-2020-09: Incentive Fees for Retention Workout Options
- Introduced a new temporary structure for incentive fees for completed repayment plans, payment deferrals/COVID-19 payment deferrals, and Fannie Mae Flex Modifications.
Fannie Mae Lender Letter LL-2020-05: Payment Deferral
- A reference to the updates to the workout option incentive fee structure introduced in Lender Letter LL-2020-09.
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 Servicing Guide chapters, forms, or exhibits noted in the announcements.
- MPF Announcement 2020-39