Updates and Clarifications to the MPF Traditional Selling and Servicing Guide
Effective Date: Immediately (unless otherwise noted)
MPF Traditional Selling Guide Updates:
Updated some of the current eligibility requirements to reflect the following:
• Clarified the language to address transactions where there is more than one Borrower on the loan. The guidance now reflects that, the property must have been purchased or acquired by at least one Borrower no less than six (6) months prior to consummation of the new mortgage transaction unless one the following exceptions listed in MPF Traditional Selling Guide section 18.104.22.168 is met.
• Incorporated guidance to indicate if the property was owned prior to closing by an inter vivos revocable trust, the time held by the trust may be counted towards meeting the Borrower’s six month ownership requirement if the Borrower is the primary beneficiary of the trust.
See MPF Traditional Selling Guide section 22.214.171.124.
Location-Specific Condominium Project Requirements
Incorporated a reminder that a Project Eligibility Review Service (PERS) is required in accordance with Selling Guide Chapter 8.6.3 for new and newly converted condo projects with attached units located in Florida.
Also, clarified that the following table is for manually underwritten loans only and indicates the maximum LTV ratios allowed for a limited review for established condominiums in Florida. See MPF Traditional Selling Guide section 8.6.5.
MPF Traditional Servicing Guide Updates:
Re-amortization and Note Modification
Updated the form Servicers must submit when executing a Re-amortization and Note Modification to FNMA Form 181 or its equivalent. See MPF Traditional Servicing Guide section 2.10.4.
Monthly Accounting Reports
Updated the required monthly reports by removing the requirement to submit the Monthly Remittance Report (Form SG301). Servicers are required to submit the Monthly Summary and Remittance Recap (Form SG300) for the MPF Traditional Product. See MPF Traditional Servicing Guide section 2.14.
Specified that when submitting Bidding Instructions, the Brokers Price Opinion (BPO) or the estimated market value from the appraisal report must not be more than 90 days old. See MPF Traditional Servicing Guide section10.8.2
Property Inspections- Vacant or Abandoned Property
Clarified that the Servicer is responsible for complying with all Applicable Laws when a Mortgage Property is determined to be vacant or abandoned, these actions may include, but are not limited to, registering the property with the municipality or securing the property in a specified manner. See MPF Traditional Servicing Guide section 8.3.5 Property Inspections.
- MPF Announcement 2021-11