Compliance with Office of Foreign Assets Control Regulations
Effective Date: Immediately
Specificity has been added to the MPF Program Guide as to servicing of loans where the PFI/Servicer identifies a Borrower, key principal, or principal as a “specifically designated national and blocked person” on Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals (SDN) list. See MPF Program Guide Section 7.3.
PFIs and Servicers that identify a valid Borrower match against the OFAC SDN List must notify the MPF Provider immediately of identifying such match to discuss potential changes to the Servicing of the associated Mortgage. Notifying the MPF Provider/MPF Bank of a confirmed match against the OFAC SDN List does not absolve the Servicer from any of its responsibilities under OFAC Regulations.
In addition, various product specific guides have been updated to ensure appropriate references to compliance with laws and Guides. (See MPF Traditional Servicing Guide Section 1.7.1, MPF Xtra Servicing Guide Section 1.7.1, MPF Government MBS Selling Guide Section 2.1, and MPF Government MBS Servicing Guide Section 1.7.1)
- MPF Announcement 2021-29