MPF Announcement 2024-21

MPF Program – E&O Clarifications

Effective Date: Immediately (unless otherwise noted within)

The MPF Program Guide has made the following updates and clarifications regarding E&O:

• Specified that PFIs and Servicers must have a mortgage related E&O insurance policy in effect at all times.
•  Clarified that the MPF Program does not require E&O coverage in excess of the following:
  • $10 million if the Base* consists of residential 1-4 family properties only, or 
  • $30 million if the Base consists of residential 1-4 family properties and multifamily properties.
    

*The Base is defined as the total portfolio of all first-lien 1-4 single family and multi-family residential mortgage loans (MPF Program loans and non-MPF Program loans) serviced by the PFI for itself and others. This includes mortgage loans serviced on the PFI’s behalf by a sub-servicer or designated an affiliate servicer.

 For additional information see MPF Program Guide Section 6.5.2 E&O Coverage and 6.6 Coverage Amounts.