Impact of COVID-19 on Originations of MPF Xtra Loans
Effective Date: Immediately (unless otherwise noted)
On August 11, 2021, Fannie Mae issued an update to Lender Letter LL-2021-03 communicating updates to temporary policies previously announced. The policies in the Lender Letters are effective immediately.
- Effective immediately Fannie Mae is retiring the age of documentation and market based asset policies that have been in place.
- Removed the verbal verification of employment policy that previously expired and the power of attorney policy that was moved to the Selling Guide.
Note: Fannie Mae will be reinstating the representation and warranty relief for employment validation within the DU validation service in a future release. All remaining policies in this Lender Letter continue to be effective 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 2021-60c