MPF Xtra Selling Guide Updates
Effective Date: Immediately (unless otherwise noted)
On October 7, 2020 Fannie Mae issued Selling Guide Announcement SEL-2020-06 which covered the below referenced topics that are applicable to loans sold under the MPF Xtra product:
- Updated the Selling Guide to implement the flexibilities for the use of remote online notarization introduced in Lender Letter LL-2020-03, Impact of COVID-19 on Originations.
- Clarified project standards requirements concerning condotel ineligibility, pre-litigation activities, and recreational leases.
- Updated the Selling Guide to align with the recent update to the DU validation service to discontinue validation of employment and income using manual verification reports.
- Clarified cash-out refinance vesting requirements when there are multiple borrowers; and gifts of equity are permitted as down payment or towards closing costs.
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 2020-68