MPF Xtra Selling Guide Updates
Effective Date: Immediately (unless otherwise noted)
Fannie Mae published the below Selling Guide updates which covers the below referenced topics that are applicable to loans originated under the MPF Xtra product:
Fannie Mae Selling Guide Announcement SEL-2022-02
- Updated the requirements to address the credit and valuation risks for single-close construction-to-permanent transactions covering the following topics:
- Age of credit documentation
- Appraisal documentation
- Requalification of the borrower
- DU validation service. Effective: These changes apply to single-close transactions where the note date of the construction loan is on or after June 1, 2022.
- Updated CPM (Condo Project Manager) status designations to align with the enhancements that will be in the CPM release on March 4, 2022.
- Simplified the policy for the allowable interest rate permitted on a Community Seconds transaction. Effective: Originators may take advantage of these policy changes immediately; but must comply with these changes for applications dates on or after June 1, 2022.
- Miscellaneous Updates:
- Updated the Selling Guide, adding back a policy related to comparable sales in new projects that was inadvertently removed when the December 15, 2021.
Fannie Mae Selling Guide Announcement SEL-2022-03
- Updated to allow for the use of an attorney title opinion letter in lieu of a title insurance policy for certain transactions.
- Aligned the Selling Guide with changes announced in LL-2022-01 regarding high-balance loan-level (LLPA) waiver requirements.
- Clarified that a new desktop appraisal is required when the effective date of the original desktop appraisal is more than four months from the date of the note and mortgage.
Fannie Mae Lender Letter LL-2021-10 (UPDATE)
- Updated the RefiNow™, eligibility requirements by removing the 620 minimum credit score requirement. Effective: This update will apply to manually underwritten loans and DU Version 11.0 loan casefiles submitted or resubmitted on or after the weekend of April 23, 2022.
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 2022-15