MPF Xtra Selling Guide Updates
Effective Date: Immediately (unless otherwise noted within)
Fannie Mae recently issued Selling Guide Announcement SEL-2021-11 which covered the below referenced topics that are applicable to loans sold under the MPF Xtra product:
- Updated the definition of principal residence to include a mortgage loan for a Borrower who is a military service member currently on active duty and temporarily unable to occupy the home due to military service.
- Clarified required documentation for when a Borrower has filed an extension with the IRS.
- Expanded the acceptable comparable sales for new (or recently converted) projects.
- Established standard requirements for measuring and calculating gross living area. Effective: Originators may begin accepting appraisals using this standard immediately, but compliance is required for all applicable appraisals with an effective date on or after April 1, 2022.
- Consolidated and streamlined property and flood insurance requirements that are shared by the Selling and Servicing Guides.
- Miscellaneous Updates:
- Moved income from unemployment benefits to be part of the public assistance income policy.
- Clarified both the Selling Guide and Loan-Level Price Adjustment Matrix to reflect that LLPAs are based on the gross LTV ratio, except for those associated with the minimum mortgage insurance coverage option, which are based on the net LTV ratio.
- Updated the Condominium Project Questionnaire (Form 1076) to in support of Lender Letter LL-2021-14.
- Originators are advised Genworth Mortgage Insurance Corporation is formally changing its name to Enact Mortgage Insurance Corporation effective February 7, 2022. The MPF Exhibit V: Approved Mortgage Insurers has been updated accordingly.
- Fannie Mae updated project standards FAQs with a new section to address questions regarding Lender Letter LL-2021-14 requirements, deferred maintenance, and special assessments.
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 2022-02