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 - Impact of COVID-19 on Originations
- Extended the application dates from March 31, 2021 to April 30, 2021 for the verbal verifications of employment and power of attorney flexibilities. This will be the final extension for these policies. Applications dated May 1, 2021 and later will be subject to standard Selling Guide policies. The other flexibilities addressed in the Lender Letter remain in place until further notice.
- Extended the application dates eligible for certain temporary appraisal flexibilities from March 31, 2021 to April 30, 2021. Note the temporary policies related to condominium project reviews will not be extended beyond April 30, 2021. The other flexibilities addressed in the Lender Letter remain in place until further notice.
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 2021-30c