MPF Xtra Updates to Loan-level Price Adjustments
Effective Date: Immediately (unless otherwise noted)
On January 19, 2023, Fannie Mae published Lender Letter LL-2023-01, which contained future changes to loan-level price adjustments (LLPAs) and overall redesign of the Fannie Mae LLPA matrix.
Effective Date: The updated LLPAs will be effective for all loans funded by the MPF Program on or after May 2, 2023.
On February 1, 2023, Fannie Mae published updates to Lender Letter 2022-05, which included:
- Removal of the requirement for delivery of Special Feature Code (SFC) 873 which applies to certain Duty to Serve loans in specific rural areas. See the link above for additional information regarding requirements.
Reference to the exception of waivers for LLPAs related to minimum mortgage insurance coverage, which never get waived. (This exception is already included in the LLPA Matrix.) Exception: LLPAs for Minimum Mortgage Insurance Coverage Option will be charged if applicable.
Effective Date: PFIs can stop delivering SFC 873 as it will no longer be used for this LLPA waiver for Loan Funding Requests submitted on and after March 1, 2023.
On June 19, 2023, this SFC will be retired and loans with this SFC on and after this date will no longer be accepted.
Note: PFIs that are eligible as a Small Financial Institution under the Duty to Serve regulation may use SFC 874 as part of the LLPA waivers.
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 2023-09