As borrowers near the end of forbearance and/or deferral period, some may be able to qualify for a temporary loan modification due to a related financial hardship. For loss mitigation tied to COVID-19, our Mortgage Partnership Finance^® (MPF^®) Traditional products also offer permanent loan modifications. In an effort to simplify the process and provide additional relief, FHLBank Chicago will now allow permanent loan modifications for all conventional MPF Traditional loans, effective immediately.

Servicers should follow the existing COVID-19-related permanent loan modification guidance when evaluating borrower eligibility, which can be found in MPF Announcement 2022-12 and a presentation pertaining to the topic.

• Servicers will go through the loss mitigation hierarchy and determine if loan modification is appropriate.
• Servicers can offer a permanent modification right away instead of a temporary loan modification.
• Servicers will not need to notify FHLBank Chicago of the agreed upon terms prior to submission.
• Servicers are still required to submit the following documents in eMAQCSPlus^®*:
  • SG354
  • Trial period plan
  • Modification cover letter
  • FNMA form 3179 (fully executed mod agreement)
  • Last 12 months payment history

For additional questions, please reach out to mpfsales@fhlbc.com or mpfdefaultservicing@fhlbc.com.

*MPF Provider or FHLBank Chicago may require additional information upon request