MPF Xtra Selling Updates
Effective Date: Immediately (unless otherwise noted)
Fannie Mae published SEL-2023-04, which covers the below referenced topics that are applicable to mortgage loans sold under the MPF Xtra product:
- Updated requirements for mortgage loans with shared equity and shared appreciation as previously announced in LL-2023-02. Note: The updates in the announcement regarding shared equity mortgage loans do not apply to MPF Xtra, the MPF Program does not accept shared equity transactions at this time. The MPF Xtra Selling Guide has been updated to reflect this, see Section 2.3.3 Eligible Transactions and 2.3.4 Ineligible Transactions, Products, or Mortgage Loan Attributes.
Effective: The policy updates are effective for mortgage loans with note dates on or after September 1, 2023. Per Lender Letter LL-2023-02, the effective date for new policies relating to the Duty to Serve regulation permitting private transfer fee covenants for certain shared equity loans is July 1, 2023.
- Clarified eligibility requirements for subordinate liens.
Updated tax documentation requirements to allow alternative documentation for IRS Form 4868 as evidence the Borrower has filed an extension for the prior year’s tax returns.
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 2023-42