MPF Announcement 2019-04

Federal Government Partial Shutdown

Effective Date: Immediately

MPF Traditional Servicing Policy Reminder

Due to the effects of the recent government shutdown, Servicers that are servicing MPF Traditional loans are authorized to grant forbearance or temporarily suspend mortgage payments for up to 90 days for Borrowers whose income is affected by the shutdown. Servicers must consult with the Master Servicer before granting relief that exceeds three months.  This guidance is effective immediately, and will automatically expire when the federal government resumes full operations.

As a reminder, Servicers that are servicing:

• MPF Government loans and MPF Government MBS loans, must follow the guidance issued by the applicable Government Agencies.
• MPF Xtra loans, must follow theguidance issued by Fannie Mae.
• MPF Direct loans, must follow the guidance issued by the product’s investor, Redwood Trust.

Servicers under the Scheduled/Scheduled remittance option are expected to continue to make P&I advances as required.