MPF Announcement 2022-25 Revised

MPF Program: Equifax Coding Error - REVISED

Effective Date: Immediately (unless otherwise noted)

The MPF Program recently learned of an Equifax coding issue that may have resulted in errors to consumer Credit Scores and credit data reported by Equifax from March 17 to April 6, 2022.

Any PFI that received credit report data directly from Equifax online or via a third-party consumer reporting agency, including merged credit reports, over this period may be affected by this incident.

PFIs are reminded of their obligations under the MPF Guides to ensure the accuracy of the credit data utilized in underwriting and accuracy of the information at the time of delivery into the MPF Program.  PFIs are expected to ensure that credit reports relied on for any part of the origination of loans sold into the MPF Program are not affected by such issues.

The MPF Program will not accept a mortgage loan where the credit report utilized was pulled during this period, unless the PFI includes a refreshed credit report. The credit refresh must be in the mortgage loan file to ensure loan eligibility. 

For Mortgage Loans processed through DU or Loan Product Advisor, the The PFI must ensure that all data submitted to the AUS or 1008 for a manually underwritten loan is true, correct, and complete.

As with any other identified loan attribute discrepancy, PFIs must notify the MPF Service Center mpf-help@fhlbc.com MPF Provider if they determine there are any discrepancies in the data attributes submitted at the time of loan delivery and the PFIs mortgage loan records.

The post-Closing Mortgage Loan File review process and any post- closing QC process must also include a review of the Mortgage Loan to assess the accuracy and integrity of the information used to support the credit decision and the documentation of any defects identified through the review.

As with any other discrepancy, if any identified discrepancy would have resulted in a loan being ineligible for delivery to the MPF Program, the PFI is required to self-report such loan to mpfinvestordirectqc@fhlbc.com to inform the MPF Provider in writing within thirty (30) days of the PFI's determination that a discrepancy a post-Closing QC finding adversely affects the investment quality or eligibility of an MPF Mortgage Loan.

For additional information see the MPF Program Guide section 8.6.2 Post-Closing Verification, 8.8. Mortgage Loan File Reviews, and 8.10.3 Reporting to the MPF Provider.