MPF Announcement 2021-59

MPF Xtra Selling Guide Updates

Effective Date: Immediately (unless otherwise noted)

Fannie Mae recently issued Selling Guide Announcement SEL-2021-07 which covered the below referenced topics that are applicable to loans sold under the MPF Xtra product:

• Clarified the policy on prohibited refinance transactions to add an additional scenario under the prearranged refinancing. Effective: This policy update is effective for all refinance transactions with applications date on or after September 1, 2021.
• Specified how credit card reward points can be used as eligible assets. Effective: Originators may take advantage of these policy changes immediately.
• Miscellaneous updates:
  • Updated the Selling Guide, to reflect the recent condo risk factors that were implemented in DU Version 11.0.

To gain a full understanding of these topics, PFIs should review the entire Fannie Mae Announcement and any applicable Fannie Mae Selling Guide chapters, forms, or exhibits noted in the announcements.