MPF Xtra Selling Guide Updates
Effective Date: Immediately (unless otherwise noted)
Fannie Mae published SEL-2023-02, which covers the below referenced topics that are applicable to loans sold under the MPF Xtra product:
- Valuation modernization: Fannie Mae introduced the following appraisal alternatives:
- Updated the naming convention for Appraisal Waiver to Value Acceptance
- Value Acceptance + Property Data
- PFIs utilizing this option must include Special Feature Code 774 at the time of delivery.
- Hybrid Appraisals
- Completion alternatives: Updated policy to allow alternative methods to the Appraisal Update and/or Completion Report (Form 1004D)
In order to utilize the Value Acceptance + Property Data option, PFIs must use one of the Fannie Mae approved value acceptance + property data service providers. The service providers offer field services (property data collector workforce), handheld app, API integration, and hybrid appraisals.
PFIs must review the Value Acceptance + Property Data report and ensure the property meets Fannie Mae’s eligibility requirements, including but not limited to, ensuring the property does not have safety, soundness, or structural integrity issues, is not in C6 condition or in Q6 quality.
To access the Value Acceptance + Property Data report PFIs must use Fannie Mae’s Property Data API Review Tool (PDART). PFIs can access PDART by registering for the tool through their technology manager.
NOTE: The Value Acceptance + Property Data option and Hybrid Appraisals are not acceptable valuation methods for delivery under the MPF Traditional.
Effective: Originators may take advantage of completion alternatives immediately. Desktop Underwriter® (DU®) will be updated the weekend of April 15, 2023, to support the additional valuation alternatives.
- Sweat equity: Expanded the circumstances and limit to which sweat equity may be used, further defined program provider requirements, and defined how to calculate the contributory value of sweat equity labor.
- Required use of Condo Project Manager™: Originators must use Condo Project Manager (CPM) for all condo projects being reviewed under the Full Review Process. Effective: Originators must use CPM for Full Reviews for loan applications dated on and after July 1, 2023.
Other topics mentioned in the Fannie Mae announcement do not apply to MPF Xtra. 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 2023-20