MPF Xtra Selling Guide Updates
Effective Date: Immediately (unless otherwise noted)
On June 3, 2020 Fannie Mae issued Selling Guide Announcement SEL-2020-03 which covered the below referenced topics that are applicable to loans sold under the MPF Xtra product:
- Updated lease review requirements by no longer no longer requiring Originators, at the loan-level, to obtain and review the lease agreement for the specific purpose of identifying contractual tenant rights.
- Clarified the late charge policy, by providing additional flexibility to the requirements by allowing a maximum of 5% and lesser amounts also are allowed.
- Updated escrow waiver policy, by no longer requiring Borrowers to establish an escrow account when including non-delinquent taxes within a limited cash-out refinance transaction.
- Clarified requirements related to horizontal property regimes and environment hazards.
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.