Information, Communication and Announcements
As we all continue to react to the current COVID-19 situation both personally and professionally, it is important to make sure you are getting the correct and most current information about options available for loan underwriting and loan servicing.
Please be sure you are signed up to receive MPF Program Announcements via the MPF Program. Here’s how:
- Simply go to: www.fhlbmpf.com
- At the top of the page, select “Subscribe.”
- Once there, to the left input your name, email address and institution to start receiving MPF Communications.
Once subscribed, you will receive all information the MPF Program shares on updates to procedures during the current COVID-19 pandemic and beyond.
MPF Announcement 2020-14 Impact of COVID-19 on Appraisals
MPF Announcement 2020-14 provided allowances for PFIs to utilize exterior-only and desktop review appraisals where prudent and eligible. This guidance follows very closely to Fannie Mae’s allowances for alternative appraisal types (please note the restrictions within the Announcement).
This is part of our ongoing efforts to improve the availability of options to our members in this current environment.
Announcements, Announcements, Announcements
Speaking of announcements, there have been quite a few of them in a very short period of time. It can be hard to keep them all straight. Fear not! Our most recent marketing bulletin, which we are publishing weekly, takes the information from all announcements concerning COVID-19 and puts them in a concise format that includes frequently asked questions and answers. It also provides links to each of the announcements to ensure you have access to every bit of information we have provided up to this point.
We continue to move forward in these unprecedented times and will work with and for you to help your borrowers. Please be sure to review this and all other announcements related to policy adjustments in light of COVID-19.
Delivery Commitment Extension Fee Waivers
To assist our PFIs wrestling with a large volume of loans in process as well as questions and concerns from existing borrowers concerning their payment options due to COVID-19, the MPF Program and FHLBank Topeka agreed to reimburse all MPF Traditional DC extension fees charged during the month of March. You will have noticed the fees assessed as normal, but a credit has been/will be placed into your account to reimburse you for these fees.
NOTE: To better assist our PFIs we are extending extension fee waivers through April 15.
We will continue to monitor this situation and provide future updates.
Mandatory Delivery Tolerances
Along with Delivery Commitment (DC) extensions, we also have delivery tolerances associated with all mandatory DCs. These tolerances provide “wiggle room” for you to work within to deliver loans without incurring pair off fees. Such as:
- Delivery Commitments are not loan specific:
When you lock a DC with the MPF Program, you may have a specific loan in mind. However, the MPF Program only sees a commitment for a certain amount, rate and term. We do not dictate which loan is submitted. This means if a loan you planned to deliver falls out for some reason, it can be replaced with another loan or loans. This gives you greater flexibility to avoid potential pair off fees.
- You have a lock amount tolerance:
Each DC allows you a tolerance of 5% up or down from the original lock amount providing more flexibility to substitute loans or negotiate with borrowers. For example, if you have a $200,000 DC, you can deliver up to $210,000 or down to $190,000 without penalty.
- You have a rate tolerance:
Each DC allows you to adjust the interest rate up or down 0.25% from the locked Note rate (within the allowances of the available rates). This means if you locked a loan at 5%, you can deliver a loan anywhere from 4.75% up to 5.25% with only the premium adjustment for the rate change. Again, the rate must be posted on the rate sheet.
Keep these options in mind if a situation arises where you need to make a change on a DC. You may have the ability to avoid penalties by taking advantage of these additional flexibilities built into the DC process.
As we all adapt to social distancing in some form or another, this may be a chance to take advantage of the MPF Program’s educational offerings. MPF Program webinars are accessible from any computer with an internet connection, so please look at what is being offered. Below is a sample of upcoming courses.
- Corp and Financial Statement Review April 8
- Investor Reporting April 22
Click here to register for any of these or other available complimentary webinars offered by the MPF Program.
Finally…”Let’s Be Careful Out There”
If you’re a fan of ‘80s television, then you may remember that line from Hill Street Blues. While what we are dealing with isn’t like an ‘80s cop show, it is still challenging and stressful. Make sure and take a minute for yourself, and please never hesitate to contact us with questions or concerns.
“Mortgage Partnership Finance” and “MPF” are registered trademarks of the Federal Home Loan Bank of Chicago.