MPF Announcement 2022-38

MPF Xtra Selling Guide Updates

Effective Date: Immediately (unless otherwise noted)

Fannie Mae recently published Selling Guide Announcement SEL-2022-07, which covers the below referenced topics that are applicable to loans sold under the MPF Xtra product.

• Allowing Lender-funded grants to provide all or part of a down payment, closing costs, financial reserves, and certain energy-related improvements. These must meet certain criteria noted in the announcement.
  • PFIs may implement this policy immediately for manually underwritten loans. Desktop Underwriter (DU) will be updated the weekend of August 20^th, 2022 to support the policy change.   
    
    
• Verbal verification of employment alternative added. PFIs may use an email exchange with the borrower’s employer within 10 business days prior to closing to verify employment. Due diligence must be conducted to confirm the email address for the employer is accurate. The email must be from the employer’s work email address and include the borrower’s name, name, title, and work email address of the individual contacted at the employer, date of contact, and borrower’s current employment status.
  • PFIs may use the verbal VOE alternative immediately. DU will be updated the weekend of August 20^th, 2022 to support the policy change.
    
    

Miscellaneous: DU Validation Service has been updated to specify that all income shown on the income verification report must be reflected in U.S.