Advantage MPP recently published Bulletin 08-20, which provides an update on several topics affected by COVID-19: loan delivery, origination, and reporting.

You can read the full bulletin here: Advantage MPP Informational Bulletin 08-20.

Loan Delivery

Mortgage loans must be current at the time of sale to FHLBank Indianapolis. Loans that have been placed into forbearance prior to sale are not considered current and are presently ineligible for delivery to Advantage MPP. Loans that were granted forbearance but have been fully reinstated prior to sale are considered current and are eligible for delivery to Advantage MPP.

Extension of Effective Dates

As a reminder, Advantage MPP has elected to adhere to the Fannie Mae and Freddie Mac guidance regarding temporary adjustments to certain requirements such as appraisals and income documentation. Fannie Mae and Freddie Mac have continued to update their guidance including an adjustment of the effective date to 07/31/20 and some recent changes regarding self‐employed borrowers

Forbearance Reporting Update

Many borrowers that have been approved for forbearance continue to make their mortgage payments. We believe this is because they are making the payments they can afford and are only utilizing the approved forbearance if needed. Some servicers are reporting these loans as “reinstated.” Please understand that if a borrower is approved for forbearance and makes a payment to remain current, the forbearance is not canceled.