MPF Xtra Selling Updates
Effective Date: Immediately (unless otherwise noted)
Pursuant to Fannie Mae SEL-2023-03, the following updates have been made which cover the below referenced topics that are applicable to loans sold under the MPF Xtra product:
- Medical Collections: Updates have been made regarding the policy for medical collections. Medical collection accounts are excluded from the limits referenced in the Guide, and are not required to be paid in full at or prior to closing.
Office of Foreign Assets Control (OFAC) Compliance: Updates have been made which do not apply PFIs/Servicers regarding OFAC related reporting to Fannie Mae on penalties (civil or criminal) or enforcement actions for compliance failures or violations. As a reminder, PFIs/Servicers are required to comply with all applicable federal and state laws and MPF Program reporting requirements.
- Earned Real Estate Commission Use: Updates have been made to include the use of borrower’s earned real estate commission for the down payment and closing costs from the sale of the subject property.
- HERA and the Minority and Women Inclusion Rule related reporting to Fannie Mae requirements were added which do not apply to PFIs/Servicers. As a reminder, PFIs/Servicers are required to comply with all applicable federal and state laws and all MPF Program reporting requirements.
- DU minimum reserve requirements updated. Updates made to provide more detail and clarity on DU determination of amounts of required reserves.
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 2023-32