MPF Government MBS Pooling Clarifications
Effective Date: Immediately
The investor for the MPF Government MBS Product, Ginnie Mae recently published APM 20-07: Temporary Pooling Restrictions on Re-performing Loans and APM 20-13: Notification regarding Loans after Deferment Loss Mitigation, concerning the pooling of re-performing loans that successfully completed a loss mitigation workout. At this time, the MPF Program will not participate in pooling re-performing loans.
The MPF Program would like to remind Servicers of the following:
- Servicer’s must comply with the applicable mortgage insurer/guarantor’s requirements for loss mitigation, however, Servicer’s are prohibited from modifying the terms of loans held in Ginnie Mae pools that affect the amount or duration of loan payments. For example:
- To exercise a deferment option, the loan does not need to be repurchased.
- In order to exercise loss mitigation options that require a change of loan terms such as a loan modification, the loan must be repurchased in accordance with section 8.2 - Delinquent Government MBS Loans of the MPF Government MBS Servicing Guide.
- The MPF Program only accepts loans that are current on Funding Date (i.e., the date the loan is sold into the Program). Loans in a loss mitigation plan (such as forbearance plan, repayment plan or other such plan) or loans with material modifications, such as changes to the original loan amount, interest rate, final maturity, or product structure, are not eligible for delivery to into the MPF Program. For example:
- If a Servicer exercises a deferment plan prior to delivering the loan, the loan is not eligible for delivery; or
- If a Servicer repurchases a loan due for loss mitigation purposes, the loan is not eligible for redelivery into the MPF Program.
- MPF Announcement 2020-75