• MPF Xtra
  • June 14, 2022

MPF Announcement 2022-26

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-2022-04

  • 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 Assignments and Recording Assignments.

Fannie Mae Selling Guide Announcement SEL-2022-05

  • 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    • Removed all outdated references to the Form 1003.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.

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