MPF Announcement 2019-21

MPF Direct Origination and Underwriting Updates

Effective Date: Immediately (unless otherwise noted)

The investor for the MPF Direct Product, Redwood Residential Acquisition Corporation, has made updates and clarifications to the following MPF Direct origination and underwriting requirements:

• Select QM: Updated minimum loan amounts for transactions with an LTV greater than 80%. 
• Select Non-QM & Choice Non-QM: Updated investment property policy and rental income guidelines. 
• Choice QM & Choice Non-QM: Clarified requirements for waiver of appraisal delivery date for HPMLs.
• Select QM, Select Non-QM, Select 90 QM, Choice QM and Choice Non-QM: Updated appraisal requirements for appraisals aged more than 120 days.
• Select QM, Choice QM and Choice Non-QM: Updated program eligibility for non- permanent resident aliens. 
• Select Non-QM:  Revised reserve requirements for borrowers not of retirement age.
• Select QM, Select Non-QM, Select 90 QM, Choice QM and Choice Non-QM : Revised unreimbursed business expense requirements as a result of tax law changes. 
• Select QM, Select Non-QM, Select 90 QM, Choice QM and Choice Non-QM: Clarified guidelines for Partnership (1065)/ S-Corporation (1120S) returns.
• Select QM, Select Non-QM, Select 90 QM, Choice QM and Choice Non-QM: Updated appraisal requirements including the acceptance of Appraisal Updates (Form 1004D). 
• Jumbo Program Eligibility Supplement:
  • Revised the seasoning requirements for cash-out refinances.
  • Clarification added for unfiled tax returns.
  • Updated TRID related requirements.

The policies described above have been incorporated into the following exhibits:

• MPF Direct Exhibit Q-D: Select QM Program Eligibility Guide
• MPF Direct Exhibit R-D: Select 90 QM Program Eligibility Guide
• MPF Direct Exhibit S-D: Choice QM Program Eligibility Guide
• MPF Direct Exhibit T-D: Jumbo Program Eligibility Supplement
• MPF Direct Exhibit V-D: Select Non-QM Program Eligibility Guide
• MPF Direct Exhibit W-D:Choice Non- QM Program Eligibility Guide.
• MPF Direct Exhibit Y-D: Quick Reference Guide – All Programs

Refer to the attached Redwood Trust Announcement 2019.03-01 published on March 25, 2019 for additional information.

TRAINING UPDATES:

Contact your local MPF Bank for additional details and training opportunities for the MPF Direct product.

REFERENCE

Please note you can access the MPF Guides and MPF Announcements on our MPF Website.