MPF Xtra Product Modifications

MPF Xtra Product: Pre-Funding Certification Process
Beginning February 1st, 2022 all MPF Xtra loans are to be certified by the MPF Program Custodian prior to loan sale and funding by FNMA. This recording will provide an overview of this new process including the impact it will have on Delivery Commitments, pricing, and document custody. We will focus on both the new Delivery Commitment requirements and the certification process steps/timeline. 

• MPF Xtra: Pre-Funding Certification Frequently Asked Questions (FAQs)
  • Updated December 8, 2021

MPF Xtra Mortgage Loans that have not received Funding Confirmation on or before February 1, 2022, must receive Note certification prior to funding in order to be eligible for purchase under the MPF Xtra product.

PFIs must ensure their processes allow for additional time within their Delivery Commitment (lock) term to make the loan funding request through eMPF® and to obtain the document custody certification of the Note prior to the expiration date on the Delivery Commitments and prior to the investor’s, and therefore the MPF Program’s, purchase of any loan after February 1, 2022.

The MPF Program Custodian will continue to be the custodian for pre-funding certification; once the Custodial Documentation package is submitted to the Custodian, the process to obtain certification with the MPF Program Custodian will be the same as the current post-funding certification process.

The following changes will be applied to the Current/Archived Pricing screens and Delivery Commitment screens on eMPF (including the Pricing Download and Pricing/Delivery Commitment reports):

• “Last Date to Request Funding”
  • For Commitment Terms expiring prior to 2/1/2022 the date will continue to be set at 2 business days prior to rate lock expiration.
  • For Commitment Terms expiring on and after 2/1/2022 the date will be 7 business days prior to rate lock expiration to allow time to obtain document certification.
• “Last Date to Obtain Certification” – this is a new data field for Pricing and Delivery Commitments.
  • For Commitment Terms expiring on and after 2/1/2022 the date will reflect 3 business days prior to the rate lock expiration, to allow enough time to complete the Investor purchase process before the Delivery Commitment expires.
    • If document certification is not obtained by this date a Delivery Commitment extension will be necessary to avoid pair-off fees.
  • For Commitment Terms expiring prior to 2/1/2022 the field will be displayed as “N/A”, since these Delivery Commitments will not be subject to the pre-funding document certification process.

• The pre-funding certification process is initiated when the PFI successfully submits a Mortgage Loan funding request through eMPF.
  • When a Mortgage Loan funding request is submitted, eMPF will provide the MPF Mortgage Loan Number required for submitting the Collateral File to the Custodian for Certification.
• PFIs will track the status of pre-funding Custodial Certification through the following new eMPF Custody reports, specific to the Mortgage Loans that require pre-funding certification:
  • Pre-Certification Complete (Mortgage Loans will not be included until the business day following certification)
  • Pre-Certification Document Exception Report
  • Pre-Certification Documents Not Received
• Generally two business days following Document Certification, PFIs will receive a Mortgage Loan funding confirmation.

• MPF Announcement 2022-03 (January 20, 2022)
  • MPF Xtra Pre-Funding Certification - Guide Updates
• MPF Marketing Bulletin 2022-02 (January 10, 2022)
  • eMPF Website: New Reports
• MPF Marketing Bulletin 2022-01 (January 3, 2022)
  • MPF Xtra Pre-Funding Certification Webinar
• MPF Marketing Bulletin 2021-25 (December 8, 2021)
  • MPF Xtra Pre-Funding Certification Webinar
• MPF Announcement 2021-74 (October 28, 2021)
  • MPF Xtra Pre-Funding Certification
• MPF Announcement 2021-69 (October 7, 2021)
  • MPF Xtra Pre-Funding Certification
• MPF Marketing Bulletin 2021-19 (August 31, 2021)
  • Product Modifications coming to MPF Xtra starting in Q4 2021

The following MPF Xtra Selling Guide and applicable Exhibits have been updated to incorporate the Pre-Funding Certification process:

• MPF Xtra Selling Guide (Revised: January 20, 2022)
• MPF Glossary (Revised: January 20, 2022)
• Exhibit K-X: Initial Certification Review Checklist for MPF Xtra (Revised: January 20, 2022)
• Exhibit J: Frequently Asked Questions and Answers of the MPF Program Custodian (Revised: January 20, 2022)

• MPF Xtra: Investor Reporting Changes Frequently Asked Questions (FAQs)
  • Updated: December 22, 2021

• Electronic Transmission - LAR 96 File Layout
  • Revision Date 1/11/2022

Effective with the March 2, 2022 Mortgage Loan activity, All Servicers will be required to report daily to the Master Servicer and will be required to transition to reporting utilizing the Fannie Mae Expanded Loan Activity Report (LAR 96).

• Effective with March 2022 Mortgage Loan Activity:
  • All Servicers will be required to report daily
    
    
• Effective with March 2022 Mortgage Loan Activity through June 2022 Mortgage Loan Activity:
  • Acceptable formats for reporting daily:
    • current MPF Xtra Layouts (Exhibit C and Exhibit D), or
    • expanded LAR 96
  • During this time period, PFIs can test the expanded LAR 96 format with the Master Servicer. Testing is for format purposes only, not content.
    
    
• Effective with July 2022 Mortgage Loan Activity:
  • All Servicers must be reporting daily using the Fannie Mae expanded LAR 96
  • The current MPF Xtra Layouts (Exhibit C and Exhibit D) will no longer be accepted

Updates to the P&I remittance cash reconciliation for A/A mortgage loans.

• This enhancement will impact the custodial account reconciliation process. The MPF Program will communicate additional operational details for this update at a future date.

Effective: These changes are targeted for an effective date in the fourth quarter of 2022.

• MPF Announcement 2021-86 (December 8, 2021)
  • MPF Xtra Investor Reporting Changes
• MPF Marketing Bulletin 2021-24 (October 29, 2021)
  • MPF Xtra Advance Notice of Change to Investor Reporting Layout and Processes
• MPF Marketing Bulletin 2021-19 (August 31, 2021)
  • Product Modifications coming to MPF Xtra starting in Q4 2021