• MPF 125, MPF 35, MPF Original
  • December 15, 2023

MPF Announcement 2023-91

MPF Traditional – Trust Income Eligibility

Effective Date: Immediately (unless otherwise noted within)

The following updates have been made to the MPF Traditional Selling Guide:

  • Added a requirement that funds used from a trust for down payment, closing costs, or reserves must be subtracted from the total funds available to determine if the income meets the applicable Selling Guide requirements.
  • Clarified the different treatments of variable and fixed trust payments and incorporated documentation requirements for each type.
  • Incorporated a requirement that when eligible employment-related assets are liquidated and placed in a trust within 12 months of the loan’s application date, the PFI must comply with the policies in Employment-Related Assets as Qualifying Income.

For additional information see MPF Traditional Selling Guide Section Continuity of Income, Employment-Related Assets as Qualifying Income, and Trust Income.  

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