If your financial institution sells under the MPF Xtra product, you’ve probably heard that Fannie Mae is updating its single-family investor reporting requirements, effective February 2017. That date may seem far off, but to take advantage of advance testing opportunities and ensure a seamless transition, PFIs can start preparing now.

The Changes (in Brief)

The most significant differences for PFIs will be:

Mandatory daily reporting of loan removal transactions. Previously, loan removal transactions such as payoffs, repurchases, or foreclosures were included in the regular monthly reporting. Now, they must be reported by noon Eastern Standard Time on the following business day.

A new reporting cycle. Instead of sending one file on the second business day of each month, PFIs will now be required to send at least two files: one on the 22nd day of the month (covering loan activity from the 1st through the 21st), and another on the first day of the following month (covering activity from the 22nd through the end of the month). To tailor the reporting process to the needs of individual PFIs, the MPF Program is offering three reporting options (please note that not all service providers will support all three options):

• Daily reporting.
• Reporting on the 22nd and the 1st (with daily reporting of loan removal transactions throughout the month).
• Reporting on the 22nd, followed by daily reporting through the end of the month (with daily reporting of loan removal transactions throughout the month).

Cumulative reporting. Loan activity reports must include not only the current activity, but also any activity that occurred on that loan earlier in the month. This is because new reporting doesn’t add to previously reported data—it replaces it.

New file naming conventions. Because newer data files overlay data reported earlier in the month, file names must now include the date on which they are sent to make sure the most recent file is easily identifiable.

Testing, Testing

To verify that the new reporting processes are running smoothly in advance of the February 2017 deadline, the MPF Program will conduct two phases of testing:

Phase I. Phase I testing will take place October 6–25 and will evaluate the flow of data through the entire reporting process—from the PFI all the way to Fannie Mae. Drawing sample files from 10 PFIs using 10 different service providers, this phase of testing will cover the reporting capabilities of an estimated 85% of the MPF Xtra portfolio.

Phase II. In this phase of testing, from August 4 to December 1, PFIs will have the opportunity to upload sample files and test different reporting scenarios. The test data will not be processed, but PFIs will receive feedback on their execution of the reporting changes, such as cumulative reporting, file naming conventions, etc., to ensure that they are ready to go come February. If you’d like to participate, email MPFXtraInvestorReportingTesting@fhlbc.com.

To Learn More

Contact your service provider. If you haven’t already discussed the upcoming reporting changes with your service provider, this is a good first step. Your service provider will be able to tell you which reporting options are available to your institution.

Attend a webinar. The MPF Program is hosting a series of complimentary webinars on the new reporting requirements, including an overview of the changes and reporting options, as well as information on testing. If you’ve missed one, recordings of a selection of previous webinars are available to be viewed at your convenience. To register for upcoming webinars or view past webinars on-demand, visit the Education section of the MPF website at www.fhlbmpf.com or click here.

Watch for PFI Notices and Advisories. For the latest updates, check for PFI Notices and Advisories in the Announcements section of the MPF website at www.fhlbmpf.com or click here.

Call the MPF Service Center. The MPF Program is here to answer your questions — just call 877-FHLB-MPF (877-345-2673) or email MPFServiceCenter@fhlbc.com.