AWACSMortgage compliance intelligence from Flightline

FHLB Chicago MPF · Announcement MPF Announcement 2026-29 · Published

MPF Traditional Escrow Analysis for Modifications and Deferrals

Servicers must utilize up-to-date tax and insurance figures during escrow reviews for payment deferrals and modifications. Additionally, servicers must conduct reviews at trial plan setup and final modification, adding any resulting shortage to monthly payments.

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

Loan impact

Summarized from the announcement · verified

Applies to: MPF Traditional mortgages undergoing a payment deferral or loan modification workout.

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 area
Loss mitigationGuide Section 9.2.3.3
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 9.2.3.3, 9.2.4.5, 9.2.4.7
RequirementPreviouslyNow
Escrow calculation and timing for deferrals and modificationsTightenedRequiredNot statedServicers must use current tax and insurance figures, analyze escrow at both the trial plan and final modification stages, and add shortages to monthly payments upon effective dates.

Also affected: Sections 9.2.3.3, 9.2.4.5, 9.2.4.7.

What to do

AWACS interpretation · not source language

What to review: Review loss mitigation servicing procedures immediately to ensure escrow analyses for deferrals and modifications reflect current tax and insurance figures and add shortages to monthly payments.

Servicing

Immediately perform escrow analyses using current tax and insurance amounts at both trial plan setup and final modification, including any shortage in monthly payments.

QC implications

  • Sample loan modifications and payment deferrals to confirm escrow analyses were performed at trial plan setup and final modification using up-to-date tax and insurance figures.
  • Verify that any escrow shortages identified are added to monthly payments upon effective dates.

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