MPF Xtra Selling Guide Updates
Effective Date: December 1, 2020
On August 27, 2020 Fannie Mae issued an update to the previously announced Lender Letter LL-2020-12, communicating changes to the impacted transactions and a new effective date for the implementation of the new adverse market refinance fee (loan-level price adjustment). The updated terms of this LLPA are described below:
Updated Effective Date:
Please note, that the LLPAs outlined in the Lender Letter now apply to existing and future MPF Xtra Delivery Commitments funded on or after 12/1/2020.
- Limited cash-out refinances
- Cash-out refinances
- Refinance loans with an original principal amount of less than $125,000,
- Single-closing construction-to-permanent loans with Special Feature Code 151,and
- HomeReady loans with Special Feature Code 900 that are processed and delivered as a refinance are not subject to this LLPA.
Loan Level Price Adjustment (LLPA):
- 50 basis points (0.500%)
- This LLPA is in addition to any other price adjustments that are otherwise applicable to the particular transaction. This LLPA applies to HomeReady refinances without regard to the cap that otherwise applies to those transactions.
As a reminder, it is important to be aware of the distinction between funding requests and the date of actual funding; the Lender Letter is referencing the date of funding by Fannie Mae and not the date of funding request to MPF.
Please work with the MPF Service Center to ensure that loans are submitted for funding request by 11/27/2020 for funding by Fannie Mae on 11/30/2020. Any loans that cannot be funded prior to 12/1/20 will be assessed the 50 BP fee by Fannie Mae.
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.
- MPF Announcement 2020-54