Impact of COVID-19 on Originations of MPF Xtra Loans
Effective Date: Immediately (unless otherwise noted)
Fannie Mae issued an update to Lender Letter LL-2020-03, Lender Letter LL-2020-04, and Lender Letter LL-2020-06, communicating updates to temporary policies previously announced. The policies in this Lender Letter are effective immediately and are effective until Fannie Mae provides further notice, unless otherwise stated.
Updates to Fannie Mae Lender Letter LL-2020-03 - Impact of COVID-19 on Originations
- Extended the application dates from November 30, 2020 to December 31, 2020 for the verbal verifications of employment and power of attorney flexibilities.
- Updated the depository account statement requirement from two to three months statements with an unaudited profit and loss statement for Borrowers using self-employed income to qualify.
Updates to Fannie Mae Lender Letter LL-2020-04 - Impact of COVID-19 on Appraisals
- Extended the application dates eligible for the temporary appraisal flexibilities from December 31, 2020 unless otherwise noted.
Updates to Fannie Mae Lender Letter LL-2020-06 - Selling Loans in Forbearance Due to COVID-19
- Extended eligibility of loans in forbearance due to COVID-19 when purchased, with note dates up to December 31, 2020 and delivery date up to February 28, 2021.
PFIs and Servicers of MPF XTRA must follow the relief policies and guidance issued by Fannie Mae, including the announcements below and by visiting Fannie Mae’s COVID-19 webpage.
In addition, 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.
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.
- MPF Announcement 2020-77