Mortgage Rate Relief FAQs

Pair-Off Calculation

• How will a pair-off fee be calculated?

  Example: Mortgage Rate Relief price 5.125 at -6.805

  Based on the days left in the DC, look at the current price at 5.125. If at pair-off, that price is -6.125, the difference would be 68 bps (0.0068).

  The price is now better by 68 bps ($100,000. X .0068 = $680.00).

  MPF will compare the price at pair-off to the price when locked in for the same note rate, based on the days left in the delivery commitment. If today's price is better than when it was locked, there will be a fee.

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Extension Fees

• Can a Mortgage Rate Relief delivery commitment be extended and what is the cost of the extension?

  The maximum extension for any MPF Traditional loan, including Mortgage Rate Relief, is 30 days.  

  The extension fee can be determined by using the eMPF website. From the “Transactions” tab, select “Delivery Commitment” and enter the existing DC number. Select “Extend” and follow the screen prompts; the system will provide the extension fee.
   
  You will have the opportunity to accept the fee, extend or cancel if you do not wish to complete the transaction.  

  All Mortgage Rate Relief loans must be delivered by 12/31 of the calendar year, or by the maximum delivery date including extension, whichever comes first. 

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Mortgage Rate Relief Income Requirements

• What are the income requirements for the Mortgage Rate Relief product?

  Mortgage Rate Relief product requires you to include all owner-occupant and non-occupant co-borrower qualifying income when determining if the income is at or below 80% of the FHFA AMI.

  All income includes verifiable income that could have been used to qualify for the loan, but was not included as qualifying income for the loan itself.

  View Income Decision Tree

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• Can I exclude a spouse to make the loan Mortgage Rate Relief eligible?

  Excluding one spouse’s income, allowing the remaining spouse to qualify at <80% of the FHFA AMI, would make the loan ineligible for the Mortgage Rate Relief program.

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• Does the number of household occupants impact how the 80% FHFA AMI will be determined?

  No, household size is not a factor used for the Mortgage Rate Relief product.

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• When there are multiple occupants, which occupants’ income must meet the Mortgage Rate Relief income requirements?

  Here are a few scenarios:

  Two occupants, both on title, both must be on the loan.	All income of both occupant title holders must meet the Mortgage Rate Relief income requirements.
  Two occupants, only one on title. Only the title holder is on the loan.	All income for the occupant on title must meet the Mortgage Rate Relief income requirements.
  Two occupants, and a non-occupant co-borrower, all three on title.	All income for the two occupants on title and the income used for the non-occupant title holder to qualify for the loan must meet the Mortgage Rate Relief income requirements.
  Two occupants, both on title and a non-occupant co-borrower, only the two occupants are on title.	All income for the two occupants on title and the income for the non-occupant non-title holder used to qualify for the loan must meet the Mortgage Rate Relief income requirements.
  How is income from a non-owner/non-occupant borrower considered?	Since the non-occupant non-title holder is on the loan, their income used to qualify for the loan must be included in the Mortgage Rate Relief income calculation.
  Three occupants: mother, father and adult son/daughter with income. Mother and father are on title, son or daughter not on title.	All income for both the occupants on title (mother & father) must meet the Mortgage Rate Relief income requirements.
  Non-married couple, both occupy the home, one on the loan and on title.	Only the occupant on the loan and title must meet the Mortgage Rate Relief income requirements.
  Two purchasers signing the contract, both will be on title; however, only one borrower is credit-qualifying. Does the other party’s income need to be taken into consideration?	This would not qualify for the Mortgage Rate Relief Product. If they are both on title they both need to be on the loan and both incomes must meet the Mortgage Rate Relief income requirements.

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• Is a borrower with a commission job eligible for Mortgage Rate Relief?

  Income that could be used for loan qualification must be used to determine if the Mortgage Rate Relief eligibility requirements are met.

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• If a borrower is purchasing a two-unit dwelling, should rental income be considered when determining if the borrower is at or below 80% of the FHFA AMI?

  Income that could be used for loan qualification must be used to determine if the Mortgage Rate Relief eligibility requirements are met.

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• Should the income of an adult dependent (i.e. parent) who is not on title be included?

  No, do not include the adult dependent’s income when determining if the income meets the Mortgage Rate Relief requirements.

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• A borrower has recently started a new second job. How will we calculate income since we generally do not count this income for loan qualification?

  Only the income that could be used for loan qualification must be used to determine if the Mortgage Rate Relief requirements are met.

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• What happens if a borrower does not disclose income on their loan application, but it is later identified through a post closing QC audit (for example, via tax transcripts)?

  It is your responsibility to satisfy that you are including all income. If the loan does not qualify due to the additional undisclosed income, this could result in a repurchase. While not required, you may want to obtain tax transcripts during the underwriting process of the loan.

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• What is required for Mortgage Rate Relief income documentation?

  If there is income that could have been used to underwrite the loan, but was not needed/used, this income will be used to determine if the loan meets the Mortgage Rate Relief requirements.

  Document the loan to show all eligible income for the owner/occupants and non-owner occupants, meets the Mortgage Rate Relief requirements.

  Tax transcripts are not required for MPF Traditional loans, including the Mortgage Rate Relief product. However, tax transcripts are required for any loan selected for QC.  See MPF Announcement 2025-103 and MPF Traditional Selling Guide Chapter 5.3.6: 4506-C and Tax Transcripts. 

  All buyers and the lender are required to sign the MRR Income Attestation form.  It is best practice to complete this prior to closing. 

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Mortgage Rate Relief Funds Availability

• How are Mortgage Rate Relief funds allocated to PFIs?

  Mortgage Rate Relief funds will be allocated on a first-come, first-served basis. No institution is guaranteed the full per-PFI limit.

  Mortgage Rate Relief funds are considered reserved when a DC is locked.

  The Mortgage Rate Relief product will expire when either all allocated Mortgage Rate Relief funds have been committed or at 3:30 p.m. CT on December 31 of the calendar year, whichever comes first.

General Mortgage Rate Relief Questions

• If the borrower is a first-time homebuyer, do they need to go through any home-owner education?

  No, first-time homebuyer education is not required to be eligible for the Mortgage Rate Relief product. If other grant funds are also being used, they may require first-time homebuyer education.

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• If we are using an automated underwriting system, would we have to show it as an Affordable Housing loan to recognize the income limits?

  An AUS can be utilized to assist in underwriting an Mortgage Rate Relief loan as a standard conventional loan, at the current Mortgage Rate Relief rate. Do not mark it as a special product, Affordable Housing, or buydown. Mortgage Rate Relief is not a Fannie or Freddie program; so special feature codes or other designations will not apply. 

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• Newrez bases the SRP on the note rate, the Mortgage Rate Relief note is lower than the Newrez SRP schedule. What SRP would be used?

  Use the lowest note rate on the SRP schedule.

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• How will Mortgage Rate Relief be disclosed on the closing disclosure?

  Borrower disclosures are not affected by Mortgage Rate Relief; grant is disbursed to the PFI, not to borrower.

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• How will the buydown subsidy and net agent fee be reflected in the loan funding transaction?

  After the loan is funded, there will be an additional line in your eAdvantage DDA posting for the loan sale indicating “Permanent Buydown.” It will reimburse you the agent fee/discount and the 2% agent fee.

• If using DU or LPA, can we utilize an appraisal waiver/value acceptance under the Mortgage Rate Relief program?

  Appraisal Waiver/Value Acceptance via DU or LPA are acceptable for MPF Traditional, including Mortgage Rate Relief.  See MPF Traditional Selling Guide Chapter 4.2.1.1.2.1 Appraisal Waivers. 

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• Is manufactured housing eligible for delivery using the Mortgage Rate Relief product?

  Yes, follow the MPF Traditional guides on manufactured housing.

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• What does FHLB Des Moines require to document a borrowing spouse (on the loan, title, and contract) who does not have any income?

  Follow normal underwriting documentation.

  The application will show the spouse not employed or as a homemaker. Tax returns will support that. Document the file to support how you arrived at the Mortgage Rate Relief income calculation.

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FHFA AMI Table

• Where can I find the AMA table?

  Using your user ID and password, sign into the eMPF website. The AMA table is on the homepage, lower right-hand side of the screen.

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• Does eMPF use the same AMI Table as Fannie and Freddie?

  Yes it does.

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• How often do the FHFA AMI numbers change?

  The FHFA AMI is updated annually. Historically the new tables are published mid-May.

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• What if the county AMI is lower from the time we started the application?

  In that case, we will honor the AMI table in effect at the time of the delivery commitment.

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Mortgage Rate Relief Delivery Commitments (DC)

• What do I need to know about Mortgage Rate Relief DCs?

  Use sub-product code “Fixed 30-yr Permanent Buydown FHLB.” Review DCs carefully.  Mortgage Rate Relief loans cannot be delivered into a non-Mortgage Rate Relief sub-product.  

  The Mortgage Rate Relief program offers one rate (subject to change), one base price (2% agent fee; 102.000 price), and one lock period (60-day + up to a 30-day extension if needed). Extension fees apply. 

  Delivery Commitments will reflect the market value required to buy down the interest rate (e.g., -6.00 points) along with the 2% agent fee. 

  There is no interest rate tolerance.

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• What if I didn’t use the sub-product of “Fixed 30 YR Permanent Buy-down?”

  The DC will need to be paired off and relocked using the correct MC and sub-product code.

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