MPF Announcement 2025-04

MPF Xtra Selling Updates - FNMA SEL - 2024-07

Effective Date: Immediately (unless otherwise noted)

Fannie Mae published SEL-2024-07 which covers updates to the below referenced topics that are applicable to mortgage loans sold under the MPF Xtra product:

• Updates to leasehold provisions:
  • Revised the eligibility requirements for properties subject to leasehold estates to provide clarifications and update lease requirements, address scenarios related to leasehold estates in projects.

Effective date: Originators may take advantage of these policy changes immediately but must do so for all loans with applications dated on or after March 1, 2025.

• Project review for manufactured homes, including those on leasehold estates:
  • Clarified policy to resolve inconsistencies related to when a manufactured home requires submission to Project Eligibility Review Service (PERS).

• Appraisal market areas:
  • To promote consistency and transparency in appraisal reports, updated requirements related to the Market Area analysis of the appraisal report and implementing standardized definitions for the terms “Neighborhood” and “Market Area.

  Effective date: Originators are encouraged to implement these policy changes immediately but must do so for loans that require an appraisal with applications dated on or after February 4, 2025.

• Preventing, detecting and reporting mortgage fraud:
  
  • Clarified that Sellers and Servicers are responsible for preventing, detecting, and reporting mortgage fraud.

Effective: Originators and Servicers not already in compliance with this requirement are encouraged to implement this change immediately but must do so by March 1, 2025.

• Updated list of Approved Mortgage Insurance Forms
  • Updated Approved Mortgage Insurance Forms to revise Radian Guaranty Inc.’s form of Commitment & Certificate of Insurance and to revise MassHousing Mortgage Insurance Fund’s Mortgage Payment Protection Endorsement.

• Miscellaneous Updates:
  • Post-delivery principal curtailment: Added an exception to allow Originators to apply a principal curtailment post-delivery to refund the overpayment of fees or charges paid by the borrower at loan closing in accordance with applicable regulatory requirements.

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.

If you have any questions, please contact the MPF Service Center via email MPF-Help@fhlbc.com or phone (877- 345-2673).