Delivering MPF Xtra Loans in Forbearance Due to COVID-19
Effective Date: Immediately (unless otherwise noted)
On July 31, 2020, Fannie Mae issued an update to Fannie Mae Lender Letter LL-2020-06: Selling Loans in Forbearance Due to COVID-19, extending the eligible note dates to August 31st and delivery to October 31st.
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.
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.
- MPF Announcement 2020-49