MPF Xtra Selling Guide Updates
Effective Date: Immediately (unless otherwise noted)
Fannie Mae recently published Selling Guide Announcement SEL-2022-09, which covers the below referenced topics that are applicable to loans sold under the MPF Xtra product.
- Retention of Asset Verification Reports: If Desktop Underwriter (DU) uses 12 months of Borrower asset data for assessment of rental payment history, the full asset report containing the 12 months of asset data is no longer required to be retained as part of the loan origination. Provided the additional requirements in the Announcement and Selling Guide are met.
Social Security Income documentation: Expanded the documentation options for Borrowers drawing Social Security income from their own account or work record.
- Average median credit score for manually underwritten loans: Updated to allow use of the average median credit score for determining compliance with the minimum credit score requirements, aligning with requirements for mortgage loans underwritten using DU.
- Clarified power of attorney exceptions made during both initial and final application.
- Clarified Originators must use appraisers that have the requisite knowledge about, and access to, all necessary and appropriate local data sources for the subject property’s geographic area, including multiple listing service(s) and government records.
- Removed the word “estimate” from the description of the Standard required for measuring gross living area.
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 2022-57