Over-Delivery / Price Adjustment Fee Examples - MPF Xtra

EXAMPLE 1

Charge based on the difference in price if agent fee on day funded - end of day price sheet - is less than when locked in

  • Take down a DC for $100,000 at a price of 1.25 (premium)
  • The delivered loan is $120,000
  • Tolerance rule – maximum delivery would be $110,000
  • When you exceed tolerance on an Xtra Delivery Commitment, the fee will be charged on the full amount that exceeds the DC amount - in this case, $20,000.00
  • Out of tolerance by $20,000 and today’s end of day price is 1.50 premium based on the last price of the day
  • Today’s price is better; no fee charged

 

EXAMPLE 2

Charge based on the difference in price if agent fee on day funded - end of day price sheet - is less than when locked in

  • Take down a DC for $100,000 at a price of 1.25 premium
  • The delivered loan is $120,000
  • Tolerance rule – maximum delivery would be $110,000
  • When you exceed tolerance on an Xtra Delivery Commitment, the fee will be charged on the full amount that exceeds the DC amount - in this case, $20,000.00
  • Out of tolerance by $20,000 and today's end of day price is .75 premium based on the last price of the day
  • Fee will be charged – based on the amount out of tolerance and the difference between the DC price and today’s end of day price; because today’s price is worse
  • $20,000.00 X .0050 = $100.00
    Had the price gone up by the same .50, MPF would credit your DDA $100.00

 

EXAMPLE 3

Charge based on difference in price if agent fee on day funded - end of day price sheet - is less than when locked in  

  • Take down a DC for $100,000 at a price of .75 premium
  • The delivered loan is $120,000
  • Tolerance rule – maximum delivery would be $110,000
  • When you exceed tolerance on an Xtra Delivery Commitment, the fee will be charged on the full amount that exceeds the DC amount - in this case, $20,000.00
  • Out of tolerance by $20,000 and today’s end of day price is -.10 based on the last price of the day
  • Fee will be charged – based on the amount out of tolerance and the difference between the DC price and today’s end of day price; because today’s price is worse
  • $20,000.00 X .0085 = $170.00
    Had the price gone up by the same .85, MPF would credit your DDA $170.00