MPF Xtra Selling Guide Updates
Effective Date: April 2, 2022
On January 5, 2022 Fannie Mae issued Lender Letter LL-2022-01, announcing Loan Level Price Adjustments (LLPA) for Second Homes and High Balance Loans.
In addition, they will no longer charge a high-balance LLPA for loans to first-time homebuyers with income less than or equal to 100% of area median income.
Exception: A high-balance LLPA will not apply if any borrower on the loan is a first-time homebuyer and total qualifying income of all borrowers is less than or equal to 100% of the applicable area median income limit for the subject property’s location. Loans must be delivered with Special Feature Code 873 (in addition to SFC 808).
Effective Date: Applies to existing and future MPF Xtra loans funded by the MPF Program on or after 4/2/22. Note that the 4/1/22 funding date referenced in the Lender Letter refers to the funding with Fannie Mae and NOT the funding with MPF Program.
Because this revised LLPA takes effect after the previously announced change in certification process that will require all MPF Xtra loans to be certified prior to funding, any MPF Xtra loan that has not obtained funding certification on or before 3/31/22 will be subject to the revised LLPA.
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 2022-04