MPF Xtra Selling Guide Updates
Effective Date: Immediately (unless otherwise noted)
Fannie Mae recently issued Selling Guide Announcement SEL-2021-08 which covered the below referenced topics that are applicable to loans sold under the MPF Xtra product:
- Updated the use of rental payment history in Desktop Underwriter (DU) which will allow PFIs to utilize a positive rent payment history to help increase homeownership opportunities for certain first-time homebuyers. Effective: This new policy applies to DU Version 11.0 loan casefiles submitted or resubmitted on or after the weekend of September 18, 2021.
- Updated the credit score used by DU in the eligibility assessment when there is more than one Borrower. Effective: This new policy applies to DU Version 11.0 loan casefiles submitted or resubmitted on or after the weekend of September 18, 2021.
- Updated qualified mortgage policies to incorporate the policies outlines in Lender Letter LL-2021-11, the changes included but are not limited to:
- Ability to repay policies,
- APR-APOR spread*, and
- Quality interest rate for short-term ARMs.
* Corrected the APR-APOR spread policy for ATR Exempt Loans to reflect that it should be calculated in accordance to the Revised General QM rule (the same as it is for ATR Covered loans).
- Miscellaneous updates:
- Clarified the requirements for Grants and Lender Contributions
- The following tops were updated as a result of the DU Version 11.0 September updates:
- Multiple Financed Properties for the Same Borrower
- Approve/Ineligible Recommendation
- Income and Employment Documentations for DU
Other topics mentioned in the Fannie Mae announcement do not apply to MPF Xtra. 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.
- MPF Announcement 2021-67