Loan impact
Summarized from the announcement · verifiedApplies to: Mortgages serviced under the MPF Xtra product.
- 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
- Foreclosure
- Affected documents
- IRS Form 1099-C; Exclusion roster for tax form distribution
- Effective
- Jan 1, 2027
- 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| Requirement | Previously | Now |
|---|---|---|
| Maximum allowable legal expenses for default proceedingsClarified | Not stated | Fannie Mae expanded maximum default legal fees nationally, removed the distinct Florida court proceeding cost, and raised permissible bankruptcy charges. |
| Review deadline for cancellation of debt exclusion recordsClarified | Not stated | Servicing institutions must retrieve and inspect the borrower-level exclusion record by the tenth business day of each January. |
What to do
AWACS interpretation · not source languageWhat to review: Review the adjustments to permissible bankruptcy and foreclosure default legal fees and the new January deadline for checking borrower-level cancellation of debt exclusion records.
QC implications
- Sample default servicing files to verify that bankruptcy charges and default legal fees comply with the updated allowable maximums.
- Verify that servicing staff retrieve and inspect the borrower-level cancellation of debt exclusion records by the tenth business day of January.
Source and record
Version 2 · archivedChecks
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
The record follows the AWACS format and uses its standard labels.
Source
- Announcement MPF Announcement 2026-70 (official) ↗ (opens in a new tab)
- Archived copy, SHA-256 9a5ac81799c2…
- Report an error · How versions work
Version history
- Version 2 (current)Recorded
- Effective date added for attorney fee schedule revisions: Jan 1, 2027
- Effective date added for tax reporting exclusion list verification: Jan 15, 2027
- Effective date removed for Foreclosure and bankruptcy attorney fee limits
- Effective date removed for Do Not Send 1099-C list review
- Title updated
- Summary updated
- Version 1Recorded