The MPF Program Reminds Servicers of Late Reporting Fees
Effective Date: Immediately
Effective with the reports required to be submitted in April 2021, each occurrence of a late or incomplete Monthly Accounting Report or Delinquent Mortgage & Bankruptcy Status Report will be subject to a late reporting fee in accordance to Section 2.14.3 – Late Reporting Fee of the applicable MPF Product Servicing Guide.
As a reminder, loans that are 30 days or more delinquent as of the last day of the preceding month and any loan in active Bankruptcy regardless of current status must be reported via eMAQCS® Plus monthly using the format in the Delinquent Mortgage & Bankruptcy Status Report (Exhibit B).
For formatting requirements, please reference the Exhibit B: Delinquent Mortgage Report - Excel Template posted on the MPF Website.
For additional information regarding common challenges when submitting the Delinquent Mortgage & Bankruptcy Status Report (Exhibit B) please refer to MPF Announcement 2020-73
Servicers are encouraged to access the following on-demand webinars to help reduce errors and discrepancies associated with Investor Reporting:
For additional resources, visit the On-Demand Webinars page on the MPF Website.
Reminder of How to Correctly Report Forbearance and COVID-19 Related Agreements
Action Codes provided on Exhibit B help to identify what actions have or have not occurred in the workout process.
Action Code 12- should be reported if there is an informal agreement with the Borrower (i.e. a forbearance plan less than three months with terms provided to, but not signed by the Borrower).
Action Code 20- should be reported if there is a formal agreement signed by the Borrower along with the following information:
- Loss Mitigation Type should reflect FFA (Formal Forbearance Agreement)
- The approval date must be provided.
- An estimated date of completion (or actual completion date) should be provided.
- In the Comments Section indicate the terms of the forbearance (i.e. full payment, P&I only, etc.).
Delinquency Status Code for Forbearance is 09
To identify mortgage loans where the Borrower has experienced a hardship associated with COVID-19, the Delinquency Reason Code should be 022 (Energy-Environment Costs).
Please note that instead of adding a new code at this time, we are using an existing code that is used infrequently.
In the rare case of loans already being reported with the Reason Code of 022, those loans should now use Reason Code 007 (Excessive Obligations).
As a reminder, for assistance with questions related to Exhibit B submissions, eMAQCS Plus, and Default Management, Servicers should contact the MPF Service Center at 877-FHLB-MPF (877-345-2673) or MPF-Help@fhlbc.com, and utilize the new call option for Default Management related questions (option 3).
- MPF Announcement 2021-26