Important Update: MPF Traditional Accommodations for COVID-19 Payment Deferrals

  • November 6, 2020
As borrowers near the end of the first and second 90-day forbearance periods, many servicers have experienced issues obtaining documentation required to approve further forbearance. In an effort to help our members, the Federal Home Loan Bank of Chicago (FHLBank Chicago) is providing an accommodation for its MPF® Traditional (Conventional) loans.

Quality Right Party Contact (QRPC) Accommodations and Reminders

 
  • Servicers are expected to contact borrowers who have received two 90-day forbearance plans no later than 30 days prior to the expiration of the forbearance plan term. Servicers experiencing delays connecting with borrower are required to continue all efforts to achieve Quality Right Party Contact (QRPC). For more information on QRPC, please see the MPF Announcement.
  • If QRPC is not established, servicers are responsible for abiding by the terms of the agreement that were communicated to the borrower when the second 90-day forbearance was established, including enforcement of agreement for the borrower’s failure to perform as agreed.
  • Servicers who have achieved QRPC and are having difficulties obtaining complete packages from the borrower(s) and/or evaluating those packages for work out options are permitted to grant borrowers up to an additional 180 days (360 days total), without obtaining MPF Bank approval, as permitted by law.
  • Participating Financial Institutions (PFIs) and/or servicers are reminded that any extension to the second forbearance period and/or changes to the second forbearance agreement should be made pursuant to all applicable laws.

As a reminder, servicers are required to abide by any/all federal or state laws as well as the most recent COVID-19 related servicing guidance for MPF Traditional (Conventional) loans published on September 14, 2020.

PFIs and Servicers Accommodations and Reminders 

  • MPF Government loans and MPF Government mortgage-backed securities (MBS) loans must follow relief policies and guidance issued by the applicable Government Agencies.
  • MPF Xtra® loans must follow relief policies and guidance issued by Fannie Mae. For more information, please see the MPF Announcement.
We're Here to Help 

For MPF product and operational support questions, please contact the MPF Sales Support team at mpfsales@fhlbc.com. For MPF pricing questions, locking delivery commitments, and funding loans, please contact the MPF Service Center at mpf-help@fhlbc.com.

Contact Us

Please direct all media and investor inquiries to:

Erin Kopecky
Vice President, Director, Communications
ekopecky@fhlbc.com
3
12.833.5323