MPF Xtra Selling Updates – FNMA SEL-2023-06
Effective Date: Immediately (unless otherwise noted)
Fannie Mae published SEL-2023-06, which covers the below referenced topics that are applicable to mortgage loans sold under the MPF Xtra product:
- Updated project standards policies for properties in need of critical repairs and special assessments. Effective: These policy changes may be incorporated into the review process immediately, but must be implemented for all new loan applications dated on or after September 18, 2023. Note, if an Originator has an unexpired project review completed prior to September 18, 2023, they must still validate these new requirements have been met for loan applications dated on or after that date. This applies to all review types.
- Revised the eligibility requirements for limited cash-out refinances to require that at least one borrower on the new loan must be a current owner of the subject property (on title) at the time of the initial loan application.
Incorporated a new loan eligibility requirement that requires mortgage loans to be no more than six months old to be eligible for sale to Fannie Mae, measured from the first payment date to the Funding Confirmation date. Note: To ensure MPF Xtra loans meet this requirement, PFIs are encouraged to submit loan funding requests within five months of the first payment date to account for time for the pre-funding certification process and subsequent funding with Fannie Mae.PFIs submitting loan funding requests more than five months from the first payment date may have the loan determined to be ineligible for funding by the MPF Program due to insufficient time to perform the pre-funding certification process and delivery to Fannie Mae within the 6 month timeframe.
The MPF Xtra Selling Guide has been updated to incorporate this requirement see 13.3.6 Loan Delivery Requests and 14. 1 Conventional Mortgage Loan Seasoning Requirements.
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 2023-61