MPF Announcement 2022-35

MPF Xtra Post Foreclosure & REO Clarifications

Effective Date: Immediately (unless otherwise noted)

The MPF Program has added the below specificity to the MPF Xtra Servicing Guide to assist Servicers when reporting Third Party Acquisitions or REO Property Acquisitions.

As a reminder, Servicers must notify the MPF Provider within 24 hours of a Third Party Acquisition or of an REO Property Acquisition by submitting Form SG334 (Notice of Acquired or Conveyed Property)  via eMAQCS® Plus.

Third-Party Acquisition

Servicers must report the following Action Codes on the Delinquent Mortgage & Bankruptcy Status Report (Exhibit B) following a third party sale:

• Report an Action Code 71 for one reporting cycle for the month in which the foreclosure sale occurred, and
• Servicers are required to liquidate the mortgage loan as a monetary transaction and must report the mortgage loan as an Action 60 on the next reporting cycle.

For additional information see Section 11.3 - Third Party Acquisition of the MPF Xtra Servicing Guide.

REO Property Acquisition

Servicers must report the following Action Codes on the Delinquent Mortgage & Bankruptcy Status Report (Exhibit B) following an REO Acquisition:

• Report an Action Code 70 or Action 72 for one reporting cycle after acquisition:
  • Action Code 70 if the Property has been reverted to the PFI/Servicer, or
  • Action Code 72 if Property has been reverted to the PFI/Servicer and mortgage insurance is in place.

• Servicers are required to liquidate the mortgage loan as a non-monetary transaction and must report the mortgage loan as an Action 60 on the next reporting cycle.

For additional information see Section 11.4- REO Property Acquisition of the MPF Xtra Servicing Guide.