MPF Announcement 2024-43

MPF Xtra Selling Updates – FNMA SEL-2024-03

Effective Date: Immediately (unless otherwise noted)

Fannie Mae published SEL-2024-03 which covers the below referenced topics that are applicable to mortgage loans sold under the MPF Xtra product:

• First-generation homebuyer: Introduced a definition for a First-generation homebuyer loan. The identification of first-generation homebuyer loans is currently optional for Originators. However, if an Originator chooses to do so, the First-Generation Homebuyer Certification (Form 1109) must be completed by each borrower who is applying for the loan. A copy of each completed Form 1109 must be retained in the loan file and the loan must delivered using Special Feature Code (SFC) 886.
  
• Reconsideration of Value: Developed a framework for Originators to review and respond to a borrower-initiated reconsideration of value (ROV).
  
• Affidavit of Affixture: Clarified that an Affidavit of Affixture is only required when a loan on manufactured housing is delivered with a personal property title and the borrower’s intent is to convert to real property. If the manufactured home was previously converted to real property in accordance with applicable law, Fannie Mae does not require an Affidavit of Affixture unless applicable state law requires a new Affidavit.
  
• Miscellaneous Updates:
  •  Clarified the treatment of Nontaxable Section 8 payments when calculating income.

 The MPF Xtra Selling Guide has been updated to incorporate the updates accordingly.

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.