MPF Xtra Selling Guide Updates
Effective Date: Immediately (unless otherwise noted)
As previously communicated in MPF Announcement 2021-27, a 7% target threshold is being imposed on the acquisition of single-family mortgage loans secured by second home and investment properties.
As a result, to ensure compliance, Fannie Mae has communicated that effective June 1, 2021, all whole loans secured by investment properties must be purchased against the Investment Property commitments in Pricing & Execution-Whole Loan® (PE-Whole Loan). Loan Delivery will allow whole loans for investment properties to only be delivered against a 30yr or 15yr investment property PE-Whole Loan commitment. If an investment property loan is delivered against another commitment type (e.g. 30-Year Fixed Rate, 30-Year Fixed Rate - 110k Max Loan Amount, etc.) a fatal edit will occur.
In order to meet Fannie Mae’s effective date of June 1, 2021, PFIs are encouraged to work with the MPF Service Center to ensure all Investment Property loans being delivered in non-investment specific delivery commitments are delivered into the MPF Program by May 24, 2021.
Any investment property loans open in non-investment specific delivery commitments that do not meet the effective date may be required to open a new delivery commitment to accommodate the MPF Xtra funding request.
Please contact the MPF Service Center with any questions or concerns (877-FHLB-MPF).
- MPF Announcement 2021-39