Accounting FAQs

Have an accounting related question about the Mortgage Partnership Finance® Program? We can help! Start with our most frequently asked questions below. For more information, please contact us.

FAQ

ARE THERE REPORTS THAT ALLOW ME TO SEE MPF ACTIVITY?

Reports for managing MPF activity are available within the eMPF website.  If you need access to eMPF, forms required for managing MPF authority updates are available on the microsite under the “Resources” tab.

Below you will find samples of some reports available in eMPF, as well as a description of these reports. 

These are not real time reports.

HOW DO I REPORT MPF ON MY CALL REPORT?

The MPF Program and FHLB Des Moines do not provide guidance regarding completion of your Call Report; however, Wilary Win. LLC has done extensive research on the MPF program and can provide assistance, including the MPF SSFA Calculator. Wilary Winn is located in St. Paul, Minnesota. You may also reach out to your regulator for guidance. 

WHAT IS CREDIT ENHANCEMENT (CE) & HOW IS IT PAID?

MPF is a unique program in which the member shares in a small amount of risk on the mortgage loans sold into the MPF Traditional program. Federal Home Loan Bank of Des Moines pays our member a monthly fee (net credit enhancement fee A.K.A. CE Fee) for sharing in the loan risk as long as the loan is on FHLB Des Moines’ books.  The Federal Home Loan Bank of Des Moines Microsite has a recorded on-demand webinar under the Resource tab that provides an in-depth overview of how risk sharing works. 

WHAT IS THIS TRANSACTION ON MY DDA ACCOUNT?

When lock extension fees, pair-off fees, or MPF funding’s are transacted by the PFI, the individual completing the process will receive confirmation email from MPF. It is suggested that these emails are forwarded to the PFI accounting department so they are aware of the transactions going through the general DDA account. Other fees that may need communicated to the accounting department would include custody fees and late investor reporting fees.

When you review your FHLB accounts in eAdvantage, you will see transaction codes. 

Click here for code definitions.

WHEN AND HOW DO I REMIT MPF TRADITIONAL P&I?

  • As the borrower’s payments are collected, the funds are held in your internal MPF P&I Custodial account (setup when you applied to the MPF Program). 
    • PFI monitors the P&I custodial account daily
    • On any day the P&I custodial account balance exceeds $2500 (net of the servicing fees), funds are transferred to your FHLB Des Moines MPF A/A account via the eAdvantage banking site.
    • Any amount remaining in the account on the first day of the month following cut off (regardless of the balance) must also be transferred to MPF A/A account
    • The MPF A/A account is set up exclusively for P&I remittances
    • Transfer funds by 10:00 AM (CT) on the next business day following receipt of the funds – the earlier the better 
      • The MPF Servicing Guide says 2:00 PM, best practice is 10:00 AM particularly when funds are sent via ACH
      • Non-compliance will result in assessment of penalty fees
  • You have three remittance options 
    • Wire
    • Recurring ACH
    • Transfer funds from one Home Loan Bank of Des Moines account to the account designated exclusively for P&I remittance (eAdvantage - MPF A/A account)
  • P&I remittances will accumulate at FHLB Des Moines (non-interest bearing account) 
    • Once a month the account will be debited based on the reports submitted to and reconciled to with the master servicer
    • Debit will occur on the 18th of each month or the business day prior to if the 18th is a non-business day
Loan Servicing Traditional

 

WHEN AND HOW DO I REMIT MPF XTRA P&I?

  • Remittance of MPF Xtra P&I Funds
    • Funds are to be remitted daily regardless of the dollar amount
    • By 10:00 AM (CT) on the next business day following receipt of the funds 
      • The MPF Xtra Servicing Guide says 2:00 PM, best practice is 10:00 AM particularly when funds are sent via ACH
      • P&I payments net of the servicing fee must be remitted to the P&I Custodial Account at the FHLB Chicago 
        • This account is established for you, there is no action required on your part
        • FHLB Des Moines will provide you with the account information
      • Non-compliance will result in assessment of penalty fees
      • Remit daily regardless of the dollar amount collected
      • If a correction is required; adjust your next remittance
  • Remittance Options 
    • ACH remittances to FHLB Chicago – highly recommended 
      • Daily remittances are sent to the Chicago DDA via ACH transaction or via wire 
        • Each wire incurs a fee, fees are billed monthly to the PFI’s main DDA account via eAdvantage
    • Wire remittance to FHLB Chicago 
      • FHLB Chicago Bank routing number – ABA 071004501
      • To DDA #0000XXXXX (9 digits)
      • Must contain check digit – check digit not displayed on eBanking Statement
Loan Servicing Xtra

 

WHERE CAN I FIND MPF INFORMATION ON EADVANTAGE?

Credit Enhancement Fee
The monthly Net CE Credit Enhancement Fee can be found on eAdvantage under Account Balances in the main DDA account around the 18th of each month.

Stock Information
Membership Stock is a requirement of membership in the Federal Home Loan Bank of Des Moines.  This stock requirement is based on the asset size of each member.

Activity stock is required to support your borrowings from the FHLB Des Moines as well as supporting mortgage loans sold into the MPF mortgage purchase program.  The activity based stock requirement is based on 4% of these activities.  For MPF loans, it is based on the unpaid principal balance of the mortgage loans sold to MPF. Your Activity based stock requirement for mortgages will be adjusted daily for mortgage loans sold to MPF.  On any day you don’t have sufficient activity based stock, FHLB Des Moines will automatically debit your general eAdvantage account. Once a month your activity based stock will be adjusted to reflect principal pay downs and mortgage loan payoffs for your MPF mortgages. This adjustment will take place on or about the 18th of each month.

Stock requirements can be monitored by accessing the Capital Stock screen in eAdvantage.  See screen shot below:
 

Summary of Capital Stock

 

Why has my MPF Credit Enhancement changed?

  • Reset of Master Commitment(s)- automatically resets in 10 years and every 5 years thereafter
  • Funding of new Traditional MPF loans
  • Adjustment from Quality Control review (e.g. Loan Presentment was adjusted due to discrepancies QC may have found)