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: Impact of COVID-19 Originations

Effective Date: Immediately (unless otherwise noted)

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 2020-37:

  • Update: Extended the application dates for some temporary policies in place from July 31, 2020 to August 31, 2020. Each applicable date has been updated within this announcement. 

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) (Issued April 21, 2002, updated April 22, 2020 and May 6, 2020)
Verbal Verification of Employment (Issued March 24, 2020, updated May 6, 2020, June 17, 2020, and July 22, 2020) (UPDATED)
Verification of Self-Employment (Issued April 6, 2020, updated May 6, 2020, June 17, 2020, and July 22, 2020) (UPDATED)
Requirements for Borrowers Using Self-Employment Income to Qualify (Issued June 9, 2020)
Continuity of Income (Issued March 24, 2020, updated May 6, 2020, June 17, 2020, and July 22, 2020) (UPDATED)
Unemployment Benefits Qualifying as Income (Issued May 6, 2020)
Furloughed Borrowers (Issued May 6, 2020)
Age of Documentation (Issued April 6, 2020, updated May 6, 2020, June 17, 2020, and July 22, 2020) (UPDATED)
Market-Based Assets (Issued April 6, 2020, updated May 6, 2020, June 17, 2020, and July 22, 2020) (UPDATED)
Title Insurance (Issued March 24, 2020)
Powers of Attorney (Issued April 6, 2020, updated May 6, 2020, June 17, 2020, and July 22, 2020) (UPDATED)
Notes, Electronic Records, and Signatures (Issued March 24, 2020)
Remote Online Notarization (Issued March 24, 2020, updated May 4, 2020)
Appraisals (UPDATED)
Automatic Underwriting Systems (AUS) (Issued April 6, 2020)
Quality Control Requirements (Issued April 6, 2020)
Business Continuity (Issued March 24, 2020)
Seasoned Loans (Issued March 24, 2020)
General Resources

MPF Traditional Loan: COVID-19 Related Servicing Guidance

Effective Date: Immediately (unless otherwise noted)

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 this guidance which supersedes any conflicting current Guide provisions or recent COVID-19 announcements, including provisions related to late fees, capitalizing interest, etc…

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 2020-41:

  • Updates- Added operational guidance for completing a COVID-19 payment deferral such as:
    • Additional documentation requirements (Including the introduction toCOVID-19 Payment Deferral Worksheet (Appendix B), one year Borrower payment history, and Borrower Hardship Certification-Form SG402.)
  • Clarified Servicers reporting responsibilities for Payment Deferrals.
  • Incorporated reporting requirement reminders within the announcement.

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 evaluate the Borrower for a forbearance plan as provided for in this Announcement.

The Servicer must achieve quality right party contact (QRPC) with the Borrower prior to offering a forbearance plan. Servicers must obtain mortgage insurance company’s approval (if applicable) prior to granting any forbearance plan, 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.

MPF Traditional: COVID-19 Related Servicing Guidance

Taxes, Insurance, MI Payments and Other Advances (Issued on April 23, 2020)
Initial 90 day forbearance period (Issued on March 19, 2020, and updated on April 23, 2020, and July 3, 2020) (UPDATED)
Post-initial 90 day forbearance plan (Issued on March 19, 2020, updated on April 23, 2020, April 30, 2020, May 19, 2020 and July 3, 2020) (UPDATED)
COVID-19 Payment Deferral Plan (Issued on May 19, 2020 and updated July 3,2020) (UPDATED)
Workout Hierarchy (Issued April 30, 2020, updated May 19, 2020)
Attempting to Establish QRPC (Issued March 26, 2020)
Late Fees (Issued March 20, 2020)
Reporting a reason for delinquency code (Issued March 26, 2020 and updated July 3, 2020) (UPDATED)
Property Inspections and Preservation (Issued March 26, 2020 and updated May 19, 2020)
Obtaining Valuations Associated with MI Termination Requests (Issued March 26, 2020)
Electronic Signatures (Issued April 10, 2020)
Credit Reporting (Issued March 20, 2020 and updated May 19, 2020)
Foreclosure Sales (Issued March 20, 2020, updated May 19, 2020, and June 23, 2020)
Bankruptcy Requirements (Issued May 19, 2020)
Evictions (Issued April 10, 2020)
Training (Updated July 3, 2020) (UPDATED)
General Resources (UPDATED)

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.