Impact of COVID-19 on Originations of MPF Xtra Loans
Effective Date: Immediately (unless otherwise noted)
Fannie Mae issued updates to the COVID-19 Originations and Appraisals Lender Letters, communicating updates to temporary policies previously announced. The policies in the Lender Letters are effective immediately and are effective until Fannie Mae provides further notice, unless otherwise stated.
Updates to Fannie Mae Lender Letter LL-2021-03 (formerly LL-2020-03) - Impact of COVID-19 on Originations
- Extended the application dates from January 31, 2021 to February 28, 2021 for the verbal verifications of employment and power of attorney flexibilities.
- Content was reorganized such that the policies with explicit expiration dates are shown first, and like content was moved closer together (such as income and employment).
- Content that no longer applies was removed (such as quality control flexibilities and submission of financial statements), as have reminders of current policies in the Selling Guide.
Updates to Fannie Mae Lender Letter LL-2021-04 (formerly LL-2020-04) - Impact of COVID-19 on Appraisals
- Extended the application dates eligible for the temporary appraisal flexibilities from January 31, 2021 to February 28, 2021, unless otherwise noted.
- Content was reorganized and like content was moved closer together. Two sections were removed (Identification of a Fannie Mae loan and Delivery requirements).
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 2021-04