MPF Announcement 2026-54

MPF Announcement: 2026-54 Date: August 24, 2026 Alert: Clarification Audience: Compliance/Legal, Program Management, Origination, Quality Control, Servicing, Underwriting Product: MPF Government MBS, MPF Traditional, MPF Xtra®

Effective Date:

Loans delivered on or after 9/1/2026

MPF Program Clarifies Minimum Guarantee Amount for VA Loans:

The MPF Traditional Selling Guide has been updated to clarify that the dollar amount of a VA guaranty must be at least equal to 25% of the original principal amount of the mortgage loan and that the maximum loan amount for VA loans is the one-unit conforming loan limit based on the county in which the property is located. See MPF Traditional Selling Guide section 2.8.1 Maximum Loan Limits for Government Mortgage Loans.

The MPF Traditional Selling Guide has also been updated to document final certification representations and warranties being made by PFI at delivery of government loans, including that:

• A complete and satisfactory mortgage guaranty or insurance application was submitted to the Government Agency within required time.
• The mortgage insurance premiums, funding fee, or guarantee fees were paid to the Government Agency within the government agency’s required time frame.
• The Government Agency has the legal authority to issue the guaranty or insurance.

See MPF Traditional Selling Guide section 15.4 Final Certification.

In addition, additional verbiage has been added to the Guide specifically reminding PFIs of their obligation to notify the MPF Provider and its MPF Bank if the Government Agency declines to issue the mortgage guaranty or insurance for any loan delivered to the MPF Program and of their obligation to provide reports on the guaranty or insurance status for all government mortgages sold into the MPF Program upon demand. See MPF Traditional Selling Guide section 15.4.2 Past Due Final Certifications.

Updates are also being made to “Exhibit I. MPF Program Custodian – Exception Codes” adding Code 32 for “Guarantee percentage is missing” and updates to “Exhibit L. Government Mortgage Final Certification Review Checklist”, to ensure clarity for the MPF Custodian’s certifications as to the 25% minimum.

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

Reference

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

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