AWACSMortgage compliance intelligence from Flightline

FHLB Chicago MPF · Program Announcement MPF Announcement 2026-24 · Published

MPF Xtra Disaster Foreclosure Approval Procedures and Workout Policy Updates

Servicers must submit an email approval request to the MPF provider before beginning or proceeding with foreclosure actions on disaster-affected properties. The update also incorporates Fannie Mae guidance regarding disaster forbearance plans and Flex Modifications.

Action requiredIn effect nowChecks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · verified

Applies to: All MPF Xtra mortgage loans secured by properties located in disaster areas.

Addressed to
MPF participating financial institutions (PFIs)From the publisher, not quoted from the text
Investor
MpfFrom the publisher, not quoted from the text
Affected areas
Foreclosure; Loss mitigationGuide Section 8.5
Affected documents
Email notification and approval packet for disaster foreclosure
Applicability confidence
Verified: every row taken from the source text is supported by it; rows marked "from the publisher" are not quoted

Summary by AWACS. FHLB Chicago MPF's guide is proprietary, so AWACS does not reproduce its text. Read the official announcement ↗ (opens in a new tab)

What changed

Summarized from the announcement · Section 8.5
RequirementPreviouslyNow
Disaster foreclosure notification and approval protocolNewRequiredNew requirementServicers must email the MPF Bank within designated deadlines with specific loan, disaster, repair, claim, and borrower contact details to obtain approval to start or continue foreclosure.
Retention workout options and disaster foreclosure rules alignmentClarifiedNot statedMPF Xtra aligns with Fannie Mae guidance on structuring forbearance plans, extending forbearance terms for disaster hardships, Flex Modification reviews, and disaster foreclosure referrals.

What to do

AWACS interpretation · not source language

What to review: Review the mandatory MPF Bank email approval protocol and submission deadlines for disaster-related foreclosures before reviewing aligned Fannie Mae disaster forbearance and Flex Modification options.

Servicing

Obtain approval from the MPF Bank via email with required loan, disaster, repair, claim, and borrower contact details prior to starting or proceeding with foreclosure on disaster-impacted properties immediately.

QC implications

  • Sample disaster-affected foreclosure files to confirm email approval was requested and secured from the MPF Bank before initiating or proceeding with legal action.
  • Evaluate disaster hardship workouts to ensure alignment with Fannie Mae guidance on forbearance plan structuring and Flex Modification reviews.

Source and record

Version 1 · archived

Checks

  • Source verified: Passed

    The document ID, link and publication date match the official source.

  • Quotes match the source: Passed

    Every quoted passage appears word for word in the official document.

  • Requirements backed by the source: Passed

    Anything marked required is backed by the requirement language and dates in the source.

  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed, adjusted automatically

    The record follows the AWACS format and uses its standard labels.

    • A detail the source does not support was removed or adjusted