MPF Announcement 2026-64

Date: September 25, 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)

Reference: Fannie Mae Lender Letter LL-2026-07

MPF Xtra Servicing Updates – FNMA LL-2026-07

Fannie Mae issued Lender Letter LL-2026-07 announcing updates that permit servicers to proactively notify borrowers who may be eligible for mortgage insurance (MI) termination based on the current value of their property.

Under this guidance, servicers may:

• Contact borrowers whose mortgage loans may be approaching or have met the loan-to-value (LTV) requirements for MI termination based on the property's current value.
• Inform borrowers of the actions and documentation required to request termination of mortgage insurance.

Effective: This policy change is effective immediately and will be reflected in a future Fannie Mae Servicing Guide update.

Form SG-343 must continue to be submitted to the MPF Provider whenever Mortgage Insurance is cancelled or terminated.

To gain a full understanding of this update, PFIs should review the entire Fannie Mae Announcement and any applicable Fannie Mae Servicing Guide chapters noted in the announcement.

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

Lender Letter (LL-2026-07)

Date: Sept. 16, 2026

To: All Fannie Mae Single-Family Servicers

Updates to Mortgage Insurance Termination Requirements

At the direction of U.S. Federal Housing (FHFA), we are updating our requirements related to termination of conventional mortgage insurance to permit servicers to solicit borrowers that may be eligible for mortgage insurance termination based on the current value of the property.

This policy change will be reflected in a future Servicing Guide update.

Servicer solicitation of loans that may be eligible for mortgage insurance termination based on current value

We are permitting servicers to proactively solicit borrowers whose mortgage loans may be close to or have reached the loan-to-value (LTV) requirements for mortgage insurance (MI) termination based on current value of the property and notify the borrower of the actions required to terminate MI as listed in Borrower-Initiated Termination of Conventional Mortgage Insurance Based on Current Value of the Property in Servicing Guide B-8.1-04, Termination of Conventional Mortgage Insurance.

Effective: This policy change is effective immediately.

Servicers may contact their Fannie Mae Account Team if they have questions about this Lender Letter.

Have guide questions? Get answers to all your policy questions, straight from the source. Ask Poli.