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Federal Home Loan Bank of Chicago (MPF Program)

MPF Announcement 2026-51

August 19, 2026

Summary

MPF Announcement 2026-51 incorporates Fannie Mae's updated property insurance requirements into the MPF Xtra servicing guidelines, covering revised monitoring standards, annual borrower reminders, lender-placed insurance, and expanded accepted documentation. Servicers must implement these changes by January 1, 2027, with minor guide edits effective immediately.

AI-generated summary · Aug 29, 2026. Verify with your compliance counsel before acting.

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MPF Announcement 2026-51

MPF Announcement: 2026-51 Date: August 19, 2026 Effective Date: Immediately (unless otherwise noted within) Audience: Compliance/Legal, Program Management, Origination, Quality Control, Servicing, Underwriting Product: MPF Government MBS, MPF Traditional, MPF Xtra®

Reference:

  • Fannie Mae Servicing Guide SVC-2026-05
  • Fannie Mae Lender Letter LL-2026-03

Alert: Policy Update

MPF Xtra Servicing Updates – FNMA LL-2026-03 and FNMA SVC-2026-05

Fannie Mae published Lender Letter 2026-03 and SVC-2026-05 incorporating corresponding Servicing Guide updates, which cover the below referenced Servicing topics, applicable to mortgage loans sold under the MPF Xtra product:

  • Property Insurance Requirements:
    • Updates include revised insurance monitoring standards, annual borrower insurance reminders, lender-placed insurance requirements, and expanded acceptable documentation of insurance coverage. Servicers must implement these changes by January 1, 2027.

PFIs should review Fannie Mae Servicing Guide Announcement SVC-2026-05, Lender Letter LL-2026-03, and the applicable Servicing Guide property insurance topics to gain a full understanding of the changes.

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

Servicing Guide Announcement (SVC-2026-05)

Date: Aug. 12, 2026

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

  • Miscellaneous updates:
    • Incorporation of Lender Letter LL-2026-03, Updates to Project Standards & Property Insurance Requirements

View the list of impacted topics.

Miscellaneous updates

Incorporation of Lender Letter LL-2026-03, Updates to Project Standards & Property Insurance Requirements: In accordance with Selling Guide Announcement SEL 2026-07, servicers are advised that we updated the Selling Guide to incorporate the property insurance policy changes communicated via Lender Letter LL-2026-03, Updates to Project Standards & Property Insurance Requirements. We updated the Servicing Guide with the related property insurance requirements specific to servicers only.

We made minor edits to align property insurance requirements for renovation mortgage loans and second lien mortgage loans with these updates. Additionally, to improve clarity and flow when incorporating these policy updates, some content in Chapter B-2, Property Insurance Requirements has been reorganized. No additional policy changes were made.

Effective: With respect to the changes in Lender Letter LL-2026-03, servicers are encouraged to implement these changes immediately but must do so by Jan. 1, 2027. The additional minor edits are effective immediately.

Impacted Topics

Section of the Announcement Updated Servicing Guide Topics (Dated Aug. 12, 2026)
Incorporation of Lender Letter LL-2026-03, Updates to Project Standards & Property Insurance Requirements • B-2-01, Property Insurance Requirements Applicable to All Property Types
• B-2-02, Property Insurance Requirements for One- to Four-Unit Properties
• D1-2-01, Renovation Mortgage Loans

Source: https://www.fhlbmpf.com/program-guidelines/mpf-program-updates/mpf-announcement-2026-51

Common questions

What does "MPF Announcement 2026-51" cover?
MPF Announcement 2026-51 incorporates Fannie Mae's updated property insurance requirements into the MPF Xtra servicing guidelines, covering revised…
Which agency issued this update?
This update was issued by Federal Home Loan Bank of Chicago (MPF Program).
When was it published?
It was published on August 19, 2026.

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