MPF Announcement: 2026-18

Date: April 17, 2026 Audience: Compliance/Legal, Program Management, Origination, Quality Control, Servicing, Underwriting Product: MPF Government MBS, MPF Traditional, MPF Xtra®

Effective Date: Immediately (unless otherwise noted within)

MPF Xtra Servicing Updates – FNMA SVC-2026-03

Fannie Mae published SVC-2026-03 which covers the below referenced topics that are applicable to mortgage loans sold under the MPF Xtra products:

• Updates to reporting an error for a paid off loan after the reporting period ends - Fannie Mae eliminated the process for requesting reactivation of paid-off loans after the applicable reporting period has ended due to a reporting error.
  • PFIs must contact the MPF Service Center to correct any payoff reporting errors identified no later than the first business day of the month following the reporting period in which the payoff reporting error occurred.

To gain a full understanding of these topics, PFIs should review the entire Fannie Mae Announcement and any applicable Fannie Mae Servicing Guide chapters, forms, or exhibits noted in the announcements.

For questions or assistance, please contact the MPF Service Center by using one of the following options:

• MPF Customer Service Portal
• Email: MPF-Help@fhlbc.com
• Phone: (877) 345-2673

Servicing Guide Announcement (SVC-2026-03)

April 8, 2026

The Servicing Guide has been updated to include changes to the following:

• Updates to reporting an error for a paid off loan after the reporting period ends: updates the Investor Reporting Manual to remove the process to request reactivation of paid-off loans after the applicable reporting period ends due to a reporting error.
• Miscellaneous update:
  • Incorporation of Lender Letter LL-2026-01 - Updates to retention workout options and disaster-related foreclosure proceedings policy

View the list of impacted topics.

Updates to reporting an error for a paid off loan after the reporting period ends

To improve data accuracy and simplify month-end processing, we updated the Investor Reporting Manual to eliminate the process for requesting reactivation of paid-off loans after the applicable reporting period has ended due to a reporting error.

Under the new process, if a payoff is reported in error and discovered after the reporting period closes, Fannie Mae will not reactivate the mortgage loan. The servicer remains responsible for remitting or advancing funds to Fannie Mae to liquidate the paid off loan. Payoff reporting errors identified and submitted within the same reporting period may be corrected through the standard investor reporting process.

Effective: This policy is effective July 1, 2026 with the June 2026 reporting period.

Miscellaneous update

Incorporation of Lender Letter LL-2026-01 - Updates to retention workout options and disaster-related foreclosure proceedings policy: We updated the Servicing Guide to incorporate policy updates introduced on Feb. 11, 2026 in Lender Letter LL-2026-01, updates to retention workout options and disaster-related foreclosure proceedings policy. Please also note that D2-3.2-01, Forbearance Plan has been reorganized for clarity and flow. There are no additional policy changes within the topic other than those announced in Lender Letter LL-2026-01.

Effective: The servicer must implement these policies on and after May 1, 2026 for all:

• forbearance plan term structuring,
• forbearance plan term extensions for borrowers with a disaster-related hardship,
• Fannie Mae Flex Modification evaluations, and
• referrals of mortgage loans for disaster-impacted properties to foreclosure proceedings and initiations of any judicial or non-judicial foreclosure process, moves for a foreclosure judgement or order of sale, or executions of a foreclosure sale for such mortgage loans.

Impacted Topics