• MPF 125, MPF 35, MPF Original
  • January 3, 2024

MPF Announcement 2024-01

MPF Traditional - Workout Options Updates

Effective Date: 
Permissible Compliance: January 2, 2024 
Required Compliance: March 1, 2024

As a reminder, the MPF Program recently announced updated MPF Traditional (conventional) workout options.

For full understanding of all changes, Servicers may refer to MPF Announcement 2023-88 and must familiarize themselves with the provisions of the new Chapter 9, and the new forms and exhibits.


All workout options and workout related guidelines will now be found in Chapter 9 of the MPF Traditional Servicing Guide (“New Chapter 9”). Some highlights of the changes include:

  • MPF Bank approval: MPF Banks prior approval is no longer required for every option.
  • Forms: In most instances, Borrower facing workout related forms or their equivalents may be used.
  • Borrower Workout Requests:In most instances, Servicers must obtain a complete Workout Request Package (WRP), including a Workout Request Application Form (Form SG 355), from Borrowers in order to evaluate them for applicable workout options.
  • MPF Reporting: Updated action codes are required for reporting the proper delinquency status of for Permanent Modifications, Forbearances, and Deferrals.


At a later date, an updated Guide will be published to reflect these changes. 

In order to allow Servicer to begin making the changes necessary to their systems, policies and procedures, New Chapter 9 is being attached to this announcement and the new forms and exhibits (other than Temporary Loan modifications (and Forms) - Exhibit FF) are being published with this announcement.     

New Chapter 9 will supersede the following sections of the current MPF Traditional Servicing Guide:

  • 2.13 Short Payoffs (Pre-Foreclosure/Short Sale)
  • 8.5 Loss Mitigation
  • current Chapter 9


Servicers may start considering borrowers based on the new guidelines for borrower requests they receive as of January 2, 2024, and are required to consider borrowers based on the new guidelines as of borrower requests they receive on or after March 1, 2024

NOTE: Servicers implementing the new guidelines prior to March 1, 2024, are required to consider borrowers ONLY based under the new guidelines, meaning the guidelines in New Chapter 9 and none of the current Guide section it supersedes.


No changes are being made at this time to any MPF Traditional Government Loan workout related guidelines.  Those guidelines can now be found in New Chapter 9, Section “9.1.2 Government Loans.”


Given the significant changes this entails, the MPF Program is providing the following training opportunity:

  • MPF Traditional Product Workout Options: Permanent Loan Modifications: January 16, 2024, 1:00 PM - 2:00 PM.Click here to register.
    • This webinar is designed to provide servicers of MPF Traditional loans a walkthrough of the new permanent loan modification option. Permanent loan modifications are designed for borrowers who are experiencing a permanent or long-term hardship and can no longer afford to make regular monthly mortgage payments. This session will cover the requirements for offering, processing, and administering a permanent loan modification.

In addition, this webinar and an earlier webinar providing an overview of the loss mitigation workout options updates for conventional loans will be available on-demand, shortly after the live dates.  Click here for On-Demand Webinars.


For any questions, please contact MPF Service Center at 877-FHLB-MPF.

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