MPF Announcement 2023-03

MPF Xtra Selling Guide Updates

Effective Date:  Immediately (unless otherwise noted) 

Fannie Mae recently published Selling Guide Announcement SEL-2022-10, which covers the below referenced topics that are applicable to loans sold under the MPF Xtra product.

• Valuation options for deed-restricted properties: updates made allowing lenders to include a desktop appraisal or appraisal waiver for deed-restricted properties that do not contain resale restrictions based on price.
• Temporary leave income: clarified mandatory leave initiated by an employer, such as furlough, is not considered temporary leave. Income from a furlough, layoff, or other employer-initiated action is not eligible to be used as qualifying income unless it is associated with seasonal employment.
• Use of business assets: documentation requirements were simplified when business assets are used for non-self-employed loans.
• Property, flood, and project insurance: updates made to insurance requirements to align with industry standards.

Miscellaneous updates

• Updates to the Form 1103, gift letters, electronic consent based social security verification, assumption policies, and Guide maintenance.

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.