Impact of COVID-19 on Originations of MPF Xtra Loans
Effective Date: Immediately (unless otherwise noted)
On February 2, 2022, Fannie Mae issued an update to Lender Letter LL-2021-03, communicating updates to the COVID origination policies previously announced. The policies in the Lender Letter are effective immediately and are effective until Fannie Mae provides further notice, unless otherwise stated.
- Effective immediately Fannie Mae is retiring the COVID-19 temporary requirements for Borrowers with qualifying income derived from self-employment provided the most recent federal income tax returns are not older than 2020.
- If the most recent federal income tax returns are dated before 2020, PFIs must continue to apply the prior requirements.
- Note that the temporary requirements for Verification of Self-employment continue to apply to all loans using self-employment income to qualify.
- Removed guidance for furloughed Borrowers and removed all prior COVID policies that expired in 2021 and 2020.
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.
- MPF Announcement 2022-05