MPF Announcement 2024-76

MPF Origination and Underwriting Policy Updates 

Effective Date: January 1, 2025

Maximum Original Loan Amount—MPF Traditional Selling Guide Chapter 2.1 & MPF Government MBS Selling Guide Chapter 2.2*

The maximum original loan amounts for conventional mortgages has increased for 2025.  

*The maximum total loan limits for MPF Government MBS Mortgage Loans are net of any financed mortgage insurance premium or funding fee as reflected on the Note.

Maximum Original Loan Amount—MPF Xtra Selling Guide Chapter 2.1

Originators must comply with the Fannie Mae Selling Guide regarding loan limits. For additional information, see the enclosed Fannie Mae Lender Letter LL-2024-03

We have published an updated version of MPF Selling Guide Exhibit N, Conventional High-Cost Area Loan Limits, to reflect the increased loan limits.

The new loan limits are effective for loans with Funding Dates (i.e. the date the MPF Bank deposits funds into the PFI’s account for the Mortgage Loan) on or after January 1, 2025.

If a loan exceeds the 2024 loan limits and has a Funding Date before January 1, 2025, it must be delivered under a high-balance Delivery Commitment. A Delivery Commitment for a loan that meets the 2025 conforming limits may be opened during 2024, provided that the Funding Date for that loan is on or after January 1, 2025. (Ex: A Delivery Commitment with a loan amount of $806,500 may be opened in December 2024 as long as the loan’s Funding Date is on or after January 1, 2025. If that same loan has a Funding Date before January 1, 2025, then it must be delivered under a high-balance Delivery Commitment).

Allowable Points and Fees—MPF Program Guide

Chapter 7.6.1 and Selling Guide Exhibit N

The Consumer Financial Protection Bureau (CFPB) has increased the loan amount thresholds and dollar amount caps that apply under the ability-to-repay and safe harbor qualified mortgage rules.

The following loan amount thresholds and points and fees caps apply to all conventional and government mortgages secured by a primary residence or second home with a loan application date on or after January 1, 2025.  The “total points and fees” and “total loan amount” must be calculated in accordance with Regulation Z (12 CFR § 1026.32).

¹For the loan amount categories with percentage caps, the PFI must apply the applicable percentage cap to the “total loan amount,” which may be less than the “loan amount.”  (See Regulation Z, 12 CFR § 1026.43, for the term “loan amount,” and Regulation Z, CFR § 1026.32, for the term “total loan amount.”