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:
- Updated to establish the following requirements for virtual currency (such as cryptocurrencies):
- Income paid in the form of virtual currency may not be considered when qualifying a borrower.
- Assets used to establish continuance for certain income types cannot be in the form of virtual currency.
- The purchase price of the property and any earnest money deposit may not be designated in virtual currency.
- The payment used as rental income must be in U.S. dollars.
- Payment on any installment debt secured by virtual currency must be included in the debt-to-income ratio calculation.
- Updated the requirements on the source of funds from assets located outside of the United States and its territories. Effective: PFIs may take advantage of these policy updates immediately but must do so for loans with application dates on and after July 1, 2022.
- Updated to provide additional details on eligibility requirements for Community Second providers. Effective: PFIs may take advantage of these policy updates immediately but must do so for loans with application dates on and after July 1, 2022.
- In this update, Fannie Mae eliminated the requirement to provide unrecorded assignments of mortgage for loans not registered with Mortgage Electronic Registration System, Inc. (MERS®). This update does not apply to MPF Xtra loans, PFIs are required to provide assignments in accordance to MPF Xtra Selling Guide 18.104.22.168 Assignments and 22.214.171.124 Recording Assignments.
- Updated policy on limited cash-out refinance transactions for two-closing construction-to-permanent loans to allow documented construction cost overruns that occurred outside of the interim construction lien to be included in the new loan amount.
- Clarified the definition of group home and related property eligibility requirements.
- Miscellaneous update:
- Removed all outdated references to the Form 1003.
Exhibit S-X: MPF Program Detailed Reference List of Required or Conditionally Required ULDD Fields
- Updated the list to align with the ULDD Phase 4a specification release.
Condominium Project Questionnaire
- Removed references to the retired Condominium Project Questionnaire – Short Form (Form 1077).
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 2022-26