Apr 12, 2022 2022-06
NEXTHome program to be suspended Friday 4/15/22
Due to a number of ongoing market changes, MFA has decided to suspend the NEXTHome program at the close of business on Friday, April 15, 2022.
While we cannot provide market commentary, it is widely recognized that the fixed income markets have been volatile since the beginning of this year. This volatility, in addition to other market factors, has caused investors to reduce their participation in mortgage-backed securities. This, in turn, has negatively impacted our ability to continue to issue rates for the NEXTHome program. This situation is not unique to MFA, as other state housing agencies and local program providers are experiencing similar difficulties.
MFA utilizes the TBA execution to fund the NEXTHome program loans. This funding execution gave us the flexibility needed to serve homebuyers who could not meet the more stringent qualifications required under bond financing, such as non- first-time homebuyers and those with higher incomes.
As we continue to monitor market conditions, we are hopeful the markets will stabilize in the near future.
Please be advised of the following:
- MFA will not accept any rate locks for NEXTHome after 4:45 p.m. MDT on Friday, April 15, 2022.
- Changing a current reservation to NEXTHome will not be allowed after 4:45 p.m. MDT on Friday, April 15, 2022.
- MFA will not process loan reinstatement requests for cancelled NEXTHome loans after 4:45 p.m. MDT on Friday, April 15, 2022.
Please note, MFA’s FIRSTHome program, financed with bond funds, will continue to be available and will remain unaffected by this change. As a reminder FIRSTHome may be utilized as a standalone first mortgage without down payment assistance; or coupled with FIRSTDown or HOMENow.
We appreciate your understanding and continuing support.
Should you have questions please contact a member of the homeownership department at 505.843.6880.
Thank you for participating in MFA programs.