The MPF Program is actively monitoring reports about the potential impact of COVID-19 (coronavirus) on borrowers, PFIs and Servicers. We have communicated various investor updates and temporary policies via MPF Announcements and e-alerts to ensure our PFIs and Servicers receive the most up to date information and enable you to better assist borrowers impacted by COVID-19. This webpage will provide a summary of the most recent MPF Announcements and e-alerts that the MPF Program published in regards to COVID-19. The red text identifies the most recent changes.

 

 

MPF Traditional Loan: COVID-19 Related Servicing Guidance

Updated: May 11, 2022

In order to help Servicers understand the available servicing related accommodations available for MPF Traditional (Conventional) loans affected by COVID-19 and understand their obligations when assisting such Borrower, the MPF Program is issuing MPF Announcement 2022-20 which supersedes any conflicting current Guide provisions or recent COVID-19 announcements, including provisions related to late fees, capitalizing interest, etc…

In addition, PFIs and Servicers are expected to abide by any/all federal or state laws or proclamations that may affect Borrowers or loans affected by COVID-19.

Any Servicer who has finalized a Post-initial 90 day forbearance plan workout option that does not meet the requirements of this announcement should contact their MPF Bank immediately.

Changes since MPF Announcement 2022-18:

  • UPDATED: the requirements related to performing an escrow analysis to clarify that Servicers must spread any escrow shortage repayment amount identified in the next annual analysis after a COVID-19 payment deferral or a COVID-19 Loan Modification over either the remaining term of the initial escrow shortage repayment period or another period of up to 60 months.

To assist Borrowers who have experienced a hardship resulting from COVID-19 (for example, unemployment, reduction in regular work hours, or illness of a Borrower/Co-Borrower or dependent family member) which has impacted their ability to make their monthly mortgage loan payment, the Servicer should follow the guidance provided for in this Announcement.

As a reminder, Servicers are expected to abide by any/all federal or state laws. If Servicers are providing accommodations to comply with any applicable law or investor requirement that conflicts with the guidance published in the MPF Guides or in the MPF Traditional COVID-19 announcements, then Servicers are required to notify the MPF Provider and MPF Bank to ensure that accurate records are maintained.

The Servicer must achieve quality right party contact (QRPC) with the Borrower prior to offering a forbearance plan or any other loss mitigation option.

Servicers must obtain mortgage insurance company’s approval (if applicable) prior to granting any forbearance plan or any other loss mitigation option, and must obtain prior approval through the MPF Provider before granting relief that exceeds the guidance or timeframes provided for in this announcement.

Servicers under the Scheduled/Scheduled remittance option are expected to continue making monthly payments to the mortgage loans’ investor as required under Applicable Agreements.

The following temporary policies are covered in this announcement. New and updated policies are noted, other policies remain as originally issued:

MPF Traditional: COVID-19 Related Servicing Guidance

Taxes, Insurance, MI Payments and Other Advances (Issued on April 23, 2020)
Disbursing Insurance Loss Proceeds (Issued on September 14, 2020)
Impact of COVID-19 on Previously Modified Loans (Issued on September 14, 2020)
Initial 90 day forbearance period (Updated July 7, 2020)
Post-Initial 90 Day Forbearance Plan (Updated March 10, 2022)
COVID-19 Payment Deferral Plan (Updated May 11, 2022) (UPDATED)
COVID-19 Loan Modification Plan (Updated May 11, 2022) (UPDATED)
Workout Hierarchy (Updated March 10, 2022)
Attempting to Establish QRPC (Issued March 26, 2020)
Late Fees (Issued March 20, 2020)
Reporting a reason for delinquency code (Updated July 7, 2020)
Property Inspections and Preservation (Updated May 19, 2020)
Mortgage Insurance Termination Requests (Issued December 21, 2020)
Obtaining Valuations Associated with MI Termination Requests (Issued March 26, 2020)
Electronic Signatures (Issued April 10, 2020)
Credit Reporting (Updated May 19, 2020)
Foreclosure & Eviction Sales (Updated April 25, 2022)
Bankruptcy Requirements (Updated March 28, 2022)
Training (Updated July 7, 2020)
General Resources / Appendix

MPF Traditional Loan: Impact of COVID-19 Originations

Updated: February 23, 2022

In a continuing effort to monitoring the spread of COVID-19 and its concerns about its potential impact on borrowers, businesses, and loan originations, the MPF Program is issuing this guidance on originating and delivering MPF Program mortgage loans, which in some instances reminds PFIs of current or announced temporary policies, and in other instances creates new temporary policies. This guidance supersedes any conflicting current Guide provisions or recent COVID-19 announcements.

Changes since MPF Announcement 2021-61:

  • Updated the requirements for borrowers using self-employment income to qualify, the policy in the section are effective for mortgage loans where the most recent tax return being used to document and support qualifying income is older than 2020.
  • Removed the Power of Attorney temporary accommodations since they have been made permanent.  
  • Removed all prior COVID policies that expired in 2021.

 

The following temporary policies are covered in this announcement.  New and updated policies are noted, other policies remain as originally issued:

MPF Traditional Loan: Impact of COVID-19 Originations

Eligibility Requirements for Purchase and Refinance Transactions (Issued June 9, 2020)
Delivery of Loans in Loss Mitigation Plan and Early Payment Default (EPD) (Updated September 29, 2020)
Verification of Self-Employment (Updated September 9, 2020)
Requirements for Borrowers Using Self-Employment Income to Qualify (Updated February 23, 2022)
Continuity of Income (Updated April 28, 2021)
Unemployment Benefits Qualifying as Income (Issued May 6, 2020)
Furloughed Borrowers (Issued May 6, 2020)
Title Insurance (Issued March 24, 2020)
Notes, Electronic Records, and Signatures (Issued March 24, 2020)
Remote Online Notarization (Updated May 4, 2020)
Automatic Underwriting Systems (AUS) (Issued April 6, 2020)
Business Continuity (Issued March 24, 2020)
Seasoned Loans (Issued March 24, 2020)
General Resources

 

COVID_Webpage

  • MPF Government loans and MPF Government MBS loans must follow relief policies and guidance issued by the applicable Government Agencies.
  • MPF Xtra loans must follow relief policies and guidance issued by Fannie Mae visiting Fannie Mae’s COVID-19 webpage. 
  • MPF Direct loans must follow relief policies and guidance issued by the product’s investor, Redwood Trust.

In addition, PFIs and Servicers are expected to abide by any/all federal or state laws or proclamations that may affect  borrowers or loans affected by COVID-19.