MPF Announcement 2024-20

MPF Xtra Selling Updates – FNMA SEL-2024-01

Effective Date: Immediately (unless otherwise noted)

Fannie Mae published SEL-2024-01 which covers the below referenced topics that are applicable to mortgage loans sold under the MPF Xtra product:

• Expanded value acceptance + property data offering to include attached and detached condos as an eligible property type and other clarifications.
  • The MPF Xtra Selling Guide was updated to incorporate the eligibility of appraisal alternatives. 

• Updated the manufactured housing cash-out refinance term to allow loan term up to or equal to 30 years on cash-out refinance transactions for multi-width manufactured homes.

• Expanded the list of nontraditional credit references to account for various examples of housing payments.

• Clarified income calculation requirements for self-employed borrowers and borrowers with less than a 25% interest in a business.
• Clarified property insurance requirements and related Originator and Servicer responsibilities to promote sustainable homeownership and ensure all properties are sufficiently insured.

• Miscellaneous updates:
  • Added examples to the list of unacceptable appraisal practices.
  • Incorporated previously issued temporary policies related to selling loans requiring flood insurance in the event of a lapse of the National Flood Insurance Program (NFIP).
  • Clarified signature requirements for individuals who are not a loan applicant but whose credit was used in qualifying. 

Other topics mentioned in the Fannie Mae announcement do not apply. 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.