MPF Xtra Selling Guide Updates
Effective Date: Immediately (unless otherwise noted)
Fannie Mae recently published Selling Guide Announcement SEL-2022-08, which covers the below referenced topics that are applicable to loans sold under the MPF Xtra product.
- Personal Gifts are updated to include additional acceptable donors. These include a non-relative that shares a familial relationship with the borrower specifically a former relative, relative of a domestic partner, and godparent. NOTE: DU will be updated in a future release to add the source option of “unrelated friend” as an acceptable donor of gift funds or gift of equity. Use “Other” as the source option within DU until the update is made.
- Transfers of gift funds were clarified to add evidence of electronic transfer of funds from the donor’s account to the borrower’s account or to the closing agent is acceptable documentation to meet the requirement for verifying donor’s availability and transfer of funds for gift.
- Updates to the list of states that allow the use of remote online notarization.
- Updates to DU messages regarding “potential red flags” to include frozen credit report and potential casefile ID reuse.
- Extension of the use of Condo Project Manager. The requirement to use Condo Project Manager effective September 2022 has been delayed to allow for additional time to address impacts by those who may not have access to the system.
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 2022-46