MPF Traditional Servicing Released (CMC Funding)

Overview

How It Works

Complete this training and begin taking advantage of the MPF® Traditional program!

Tooltip  Indicates helpful hint is available. Click for additional info.

Your responsibilities

  • Confirm each loan meets the requirements of the applicable MPF Product guide
  • Originate, process, underwrite and close the mortgage loan
  • Register with MERS (if not already a MERS member)
  • Meet program time frames
  • Sell the loan to MPF
    • Deliver the custody file to the MPF Document Custodian 
    • Upload the servicing file electronically via the eMPF website
    • Provide the original/final trailing documents to CMC's document custodian (Bank of New York Mellon)
    • Upload the final/trailing documents via the eMPF website
  • Meet MPF quality control requirements

CMC Funding's responsibilities

  • Purchase the servicing rights and utilize Specialized Loan Servicing, LLC (SLS) as their subservicer
  • Apply and process the borrower’s mortgage payments
  • Manage the borrowers’ escrow accounts and provide annual escrow analysis
  • The SRP will be paid to you by CMC Funding; CMC will net the required escrow balance and fees from the SRP. If netting results in a negative SRP, you will be required to wire the necessary funds within 2 business days:
    • Tax Service Fee: $85.00
    • Conventional Loan Boarding Fee: $150.00
    • Government Loan Boarding Fee: $500.00

Step 1: Borrower Application

Overview

Congratulations! Your borrower has trusted you to originate their home loan.

With you as their mortgage professional, the Borrower will complete the loan application and provide all requested documentation. Let’s get started!

Your responsibilities

  1. Determine if your borrower’s loan meets the MPF® program requirements found in the MPF Guides.
    View our MPF Loan Eligibility Webinar.
  2. Assist the borrower in completing the loan application.
  3. Send out initial disclosures (i.e., TIL, Loan Estimate, etc.).

Step 2: Loan Data Delivery

Overview

Loan data delivery (also known as loan presentment) is your method of providing MPF® with the loan details. Accuracy is essential.

The loan data must be submitted to determine the loan’s Credit Enhancement (CE). The CE determines the amount of risk your institution will share on the loan. Credit enhancement results are given in both a percentage and dollar amount and represent the amount of shared risk. A low score would indicate a higher quality loan; a loan could receive a result of zero. 

To see more details about how risk is shared, view our risk sharing webinar here.

It is highly recommended to credit enhance the loan prior to locking. The loan must be risk scored prior to being purchased by MPF. The process of credit enhancing the loan does not determine its MPF eligibility; it simply determines the amount of risk associated with each loan. With this information, you make the decision to sell to MPF.

Please note: The credit enhancement process can be completed at any time prior to loan purchase by MPF and may be performed multiple times. There are no fees associated with credit enhancement submission. 

Your Responsibilities

  1. Deliver the loan details within the eMPF website between 6:00 AM and 9:00 PM CST seven days a week.
    There are two options for submitting loan details:
    • Option 1 – Automated (Batch) Submission (single or multiple loans)
      • What's required:
        • Fannie Mae 3.0 XML ULDD
        • MPF Additional Data File
      Check out our video demo on Automated Submission
    • Option 2 – Manual Submission (single loan only)
      Check out our video demo on Manual Submission
  2. If loan information changes after your most recent submission, correct the loan data and re-submit.
    (For manual delivery, update your loan presentment and re-submit. For automated delivery, correct the information in your LOS and re-submit the batch.)
    • At the time of funding, the loan data submitted must match the loan file.

      Loan Presentment is not an automated underwriting system; it simply determines risk.

      Accuracy is important. If your loan is chosen for MPF Quality Control review, the auditor will compare the data you provided to the loan file. Any discrepancies will be reported in the quality control findings.

  3. Based on credit enhancement results, you make the decision to deliver the loan to MPF.

Step 3: Processing

Overview

Now's the time to complete the processing steps that ensure your borrower and the property meet the MPF® requirements.

You will process the MPF loan as you would loans for other secondary market investors. 

Want to know more? View our Loan Eligibility and Processing Basics webinars.

Your Responsibilities

  1. Run your automated underwriting system (if applicable).
  2. Gather borrower information. 
  3. Validate the information provided by the borrower.
  4. Order an Appraisal.
  5. Order the Title search.
  6. Order a Life of Loan Flood Certification.
    A flood zone determination certificate with life-of-loan coverage must be obtained from a servicer-approved vendor.{Tooltip}
  7. For LTVs over 80%: Obtain private mortgage insurance from our list of approved vendors.{Tooltip}
  8. If using an Automated Underwriting System (AUS): When loan data is updated and the AUS is submitted for the final time, loan information should match the documentation used to make the final decision.

Step 4: Pricing & Locking a Loan

Overview

Determine your borrower's interest rate.

You can refer to the MPF® rate sheets to view rates, terms and lock periods. Benefits of MPF Traditional pricing include:

  • No additional points for low loan amount
  • No additional points for second homes
  • No additional points for cash out refinances
  • No loan level price adjustments
  • No MPF delivery fees

Your Responsibilities

  1. Access pricing at the eMPF website.
    • Rate sheets are posted between 8:30 AM and 3:30 PM (CST).
    • Price the loan using the actual/actual servicing remittance option.
    • Pricing is subject to change based on market movement.
      How to read the MPF Price Sheet
  2. Review CMC Funding's Servicing Release Premium (SRP) schedule.
    • The SRP paid by CMC is based on the SRP fee schedule in effect at the time the loan is locked. The CMC pricing schedule may change intraday. 
    • CMC pays the SRP following the review and acceptance of the imaged servicing file. 
    • CMC's SRP schedule can be accessed from the Pricing tab within the eMPF website.
      Find out how SRP is calculated
  3. Loans can be locked via the eMPF website between 8:30 AM and 3:30 PM (CST).
    • With MPF mandatory delivery, you won’t lock a specific borrower or property address; you will only lock a dollar amount, term, interest rate and lock term.
    • What you’ll need:
      • Master Commitment Number
      • Delivery Amount ($)
      • Product
      • Commitment Term/Expiration Date
      • Note Rate (%)
    • Once your lock is submitted and confirmed within eMPF, you will be emailed a copy of the lock confirmation. It is recommended you print the confirmation for the loan file. You may also have a confirmation emailed to a secondary contact.

      Check out our video demo for locking a loan within the eMPF website

      Learn more about MPF Traditional Locks and Tolerances

    • Lock Extensions
      • Request a lock extension thru the eMPF website on the “Transaction” tab using the delivery commitment screen.
        • Extensions can be for one day at a time or for multiple days; an extension cannot exceed a total of 30 calendar days.
        • Extension fees will be calculated and quoted to you; you will have 60 seconds to accept or decline the quote. (For quotes not accepted within 60 seconds, simply resubmit.)
        • Extension fee will be charged to your general Demand Deposit Account (DDA) within eAdvantage (your institution's banking site with FHLB Des Moines) on the date the extension is accepted.
        • You will want to have funds in your general DDA to cover the extension fee.
          Check out our video demo for extending a lock within the eMPF website
    • Loan Amount Reductions
      • Go to the eMPF website and click the “Transaction” tab using the delivery commitment screen and select “Reduction.”
      • Reduction fees for a pair-off will be calculated and quoted to you; you will have 60 seconds to accept or decline the quote. For quotes not accepted within 60 seconds, simply resubmit.
      • Reduction fees will be charged to your general DDA within eAdvantage, on the date the reduction fee is accepted.
      • Once a lock is reduced, the 5% tolerance rule no longer applies and the new tolerance becomes $50.
        Check out our video demo for reducing a lock within the eMPF website
        See MPF Traditional Loan Amount Reduction examples
    • Pair-off Fees{Tooltip}
      • Pair-off fees will be charged for loans delivered at less than 95% of the original loan lock.
      • Pair-off fees will be calculated and quoted to you; you will have 60 seconds to accept or decline the quote. For quotes not accepted within 60 seconds, simply resubmit.
      • Pair-off fees will be charged to your general DDA within eAdvantage, on the date the pair-off fee is accepted.
      • These fees are charged at expiration with the benefit of tolerance.
      • If the lock is reduced prior to expiration, the fee is charged on the actual amount of the change.
        See MPF Traditional Pair-Off Fee examples
    • Over-Delivery / Price Adjustment Fee{Tooltip}
      • An over-delivery fee (also known as a price adjustment fee) will be charged on loans delivered in excess of 105% of the original loan lock.
      • A lock (delivery commitment) can be over-delivered by $100,000 but cannot exceed the maximum loan limits.
      • The amount charged to your general DDA account will be based on the last price sheet of the day on the day the loan is purchased by MPF.
        See MPF Traditional Over-Delivery / Price Adjustment Fee examples

Step 5: Underwrite the Loan

Overview

The loan is ready for underwriting!

Once a package with all processed verifications and documentation is completed, the file is sent to the underwriter. The underwriter is responsible for determining whether the package is deemed an acceptable loan by analyzing the 5C’s of underwriting:

1. Capacity: How much can the Borrower afford?
Consider: DTI, Cash Flow, Occupation, Employment History, Income Stability, Timing of Repayment, Continuance, etc.

2. Capital: What will the borrower invest and have for reserves?
Consider: Checking/Savings, Investments, Liquidity, Cash for Close, Reserves, Overdraft/Non-sufficient Funds, etc.

3. Collateral: In the event of a default, what is the property worth?
Consider: LTV, Marketability, Appraisal Discrepancies, Liens, Easements, Judgments, etc.

4. Conditions: What are unique factors surrounding the loan?
Consider: Market Conditions, Loan Purpose, Use of Cash Out (if applicable), etc.

5. Character: Will the borrower repay the loan?
Consider: Borrower Attitude, Payment History, Credit Score, etc.

Your Responsibilities

  1. Underwrite the loan using either an Automated Underwriting System (AUS) or manually.
    • For loans underwritten using Fannie Mae’s Desktop Underwriter® (DU®) or Freddie Mac’s Loan Product Advisor℠ (LPA℠) automated underwriting system, follow the AUS feedback requirements for the applicable GSE and not the manual underwriting guidelines of the MPF® Traditional Selling Guide.
    • The only MPF program requirements that supersede DU and LPA requirements are the following:
      • Max LTV: 95%
      • Minimum FICO: 620
      • Full Interior/Exterior Appraisal, regardless of what appraisal type the AUS may allow
      • Occupancy Requirements
      • Property Type Eligibility (for example: Co-ops are not eligible under the MPF Program)
      • Products or loan attributes on the ineligible list (see Selling Guide Chapter 2.7)
    • For manually underwritten loans: Originators must follow the underwriting and eligibility guidelines of the MPF Traditional Selling Guide.
    • For Government Loans: See the CMC Funding Whole Loan Servicing Transfer Manual for eligibility requirements. 
  2. Determine if the loan meets all of the documentation and eligibility requirements of the MPF Guide.
    • This includes all approval conditions generated on the feedback report (if using an AUS) or any additional conditions the underwriter may require.
    • If more information is needed, the borrower is contacted to supply more information and/or documentation.
    • If the loan is acceptable as submitted, continue on with the next steps in the loan process.

For additional Underwriting training, please attend our on-demand webinars:
MPF Loan Eligibility Requirements
Underwriting: Basics (Part 1)
Underwriting: Basics (Part 2)
Underwriting: Advanced

Step 6: Closing

Overview

It’s the big day for your borrower!

It’s also an important milestone for your institution, as this is the final step before selling the loan to MPF®. During this stage, we will cover the specific steps you will need to complete to sell your loan.

How it Works

  1. Proceed with your normal closing procedures.
    • Review the CMC Funding Whole Loan Servicing Transfer Manual for servicer specific requirements.
      • Include CMC Funding delivery fees:
        • Tax Service Fee: $85.00
        • Conventional Loan Boarding Fee: $150.00
        • Government Loan Boarding Fee: $500.00
    • Prepare the closing documents.
      • The loan will close in your institution’s name.
      • MPF does not require any program specific forms.
    • Be sure to use only the most current standard Fannie Mae/Freddie Mac uniform instruments.
      • Use the Multi-state Fixed Rate Note FNMA/FHLMC 3200.
        • Must use 5% late charge after 15 days (OG-12) unless state law states differently.
        • MPF prohibits prepayment penalties on the first lien and any subordinate liens for conventional and government mortgages.
      • Use the FNMA/FHLMC state-specific Mortgage or Deed of Trust.
        • MOM mortgage or Assignment to MERS
      • Use the following FNMA/FHLMC riders if applicable:
        • Multiple units require the use of 1-4 Family Rider (FNMA 3170)
        • PUD Rider (FNMA 3150)
        • Condo Rider (FNMA 3140) 
        • Second Home Rider (FNMA 3890)
    • CMC Funding requires you to be a MERS member. Refer to the CMC Funding Whole Loan Servicing Transfer Manual for more information.
  2. Close with the borrower.
    • Provide borrower with the Notice of Servicing Transfer (Exhibit 4 of the CMC Funding Whole Loan Transfer Servicing Manual) or equivalent document at closing or as required by RESPA and other applicable laws. This document must include an accurate effective servicing transfer date.{Tooltip}

Your Responsibilities

  • Meet all federal and state regulations. 
  • Pay all taxes, delinquent taxes or insurance payments due within 60 days before or after the sale date.

    CMC Funding's Responsibilities

    • The SRP will be paid to you by CMC Funding; CMC will net the required escrow balance and fees from the SRP. If netting results in a negative SRP, you will be required to wire the required funds within 2 business days.

    Step 7: Selling

    Overview

    It's time to reap the rewards of selling your mortgage through the MPF® Program.

    Now that you've closed with the borrower, you will need to sell the loan to MPF. 

    1. MPF purchases the loan.
    2. CMC Funding purchases the servicing.
      • The Servicing Released Premium (SRP) will be paid to you by CMC Funding.

    Prior to Beginning the Funding Process

    • You must have the delivery commitment (lock) confirmation number.
    • Loan must be closed and disbursed.
    • Loan data must be submitted in eMPF and consistent with the documentation in the loan file.
      • If any data is not consistent, correct and re-submit.
        If selling MPF a seasoned loan, see the Traditional SG 14.1.

    See how loan funding is calculated.

    The interest calculation is based on the net/pass-thru rate (note rate less 25 bps) using 30/360.{Tooltip}

    See Sample Funding calculation with Interim Interest

    See Sample Funding calculation with Accrued Interest

    Your Responsibilities

    1. Submit funding request via the eMPF website between 8:30 AM - 3:30 PM CST.
      You must use the same method to fund as you used for loan presentment (i.e., if you used automated submission for loan presentment, you must use automated submission to fund).
      • Automated (Batch) Submission: Utilizes the Fannie Mae 3.0 ULDD & MPF Additional Data File (can be used to fund single or multiple loans)
        Check out our video demo on Automated Submission
      • Manual Submission: Manual input of data fields (can be used to fund a single loan only)
        Check out our video demo on Manual Submission
    2. Receive funds from the MPF Program.  
      • MPF credits your DDA account in eAdvantage on the funding date.
      • You or your accounting staff will need to move loan funds from eAdvantage to your own internal accounts via ACH or wire transfer. Types of activity you will see in your eAdvantage DDA account include:
        • Loan fundings
        • Extension fees
        • Pair-off fees
        • Over-delivery/Price adjustment fees
        • Custody fees
        • Credit enhancement fees

    Step 8: Post-Closing

    Overview

    Congratulations, you've sold your loan to the MPF® Program!

    Now that you have funded your loan, you need to overnight the custody file to the document custodian and upload the servicing file to CMC Funding via the eMPF website.

    For any questions regarding CMC Funding delivery, please see the CMC Funding Whole Loan Servicing Transfer Manual.

    Your Responsibilities - Delivering the Custody Package

    The MPF Document Custodian (Wells Fargo) maintains the safekeeping of your file documents until conditions warrant their release.

    1. Prepare the custody file folder.
      You must submit a manila, legal-sized folder containing your custody documents for each loan file you mail to the document custodian. 
      • You must attach a label to the top right corner of the folder. 
      • Labels must contain the following information:
        • FHLB (MPF Program)
        • PFI Name: CMC Funding
        • Master Commitment Number:
        • Borrower Name:
        • FHLB MPF Loan Number: (from funding confirmation)
        • PFI Loan Number:
          Use our handy label template!
        • For New PFIs Only: MPF Provider will provide the first set of file labels. You are responsible for creating labels after those are depleted.
    2. Prepare the documents to be included in the custody file folder.
      Use the MPF Initial Certification Review Checklist (Exhibit K) as a job aid to ensure all documents in the collateral file are executed and delivered to the Custodian in accordance with the requirements of the MPF program. This checklist compares the custody package information to the information submitted to MPF at the time of purchase. 
      Do not include this checklist with the document package you send to Wells Fargo.

      The custody file must contain the following information:
      • Original note (endorsed from your bank to _______ [blank]). See sample. 
      • Certified copy of the MOM Mortgage or a certified copy of the Assignment to MERS (originals are sent for recording). If using a standard assignment form, follow the requirements in section 4.3.2 of the CMC Funding manual. 
        • You must be a member of MERS, able to register and transfer loans through MERS
          • You must update MERS within 5 days of the CMC SRP funding date
          • Use the proper MERS registration as follows: 
            • Investor = Federal Home Loan Bank of Chicago as MPF #1000491
            • Servicer = CMC Funding Inc. MERS OrgID #1000900
            • Subservicer = MERS OrgID 1003225 (SLS)
      • If applicable:
        • Certified copy of borrower’s power of attorney
        • Certified copy of trust agreement
        • If third party originated: certified copy of all intervening assignments
        • The first page of any copies in the custody folder must be stamped “True and Certified Copy” and initials or signature below the certification.
        • For Government Loans Only: All loans must receive Final Certification. Use the Government Mortgage Final Certification Review Checklist (Exhibit L) form.
      • If any information within this custody package is inconsistent with the information you submitted to MPF at the time your loan was purchased, you must complete the MPF Schedule Correction Form (OG7). You can submit this form with the custody package if you identify an issue in pre-delivery review. You can also complete this form to correct errors found later by the document custodian.
        Learn more about Custody Fees.
    3. The custody file must be shipped to the document custodian and certified within 7 calendar days of MPF Funding.
      File must be overnighted via UPS or FedEx to the following address:

      Wells Fargo Bank, NA
      MPF Program
      751 Kasota Avenue
      Minneapolis, MN 55414-2842

      To avoid an excess overnight mailing fee, proof the document package using the MPF Initial Certification Review Checklist (Exhibit K) prior to delivering the custody package to the document custodian.

    Your Responsibilities - Uploading the Servicing File

    1. Upload the Servicing File to CMC Funding within 7 calendar days of MPF Funding (see the Mortgage Loan File Checklist - Exhibit 5 in the CMC Funding Whole Loan Servicing Transfer Manual).
      • Deliver the Mortgage Loan File utilizing the eMPF website via the Upload Utility. The uploaded Mortgage Loan File will be automatically transferred to CMC Funding for review.
      • Documents delivered electronically through the eMPF website must be in a .pdf format.
      • All documents should be saved into one file.
      • The PFI Document Upload tab can be found under the Upload header of the eMPF Website. Select “Servicing Transfer” from the Document Category menu. Select the applicable Serviced Loan. Under the “Servicing File Doc” browser, browse for the Mortgage Loan File. Once the Mortgage Loan File has been selected click the submit button for document submission. When the Mortgage Loan File has been successfully uploaded the current date will appear under the Servicing Doc column.
      • Keep original physical file for your record retention and quality control requirements.
    2. CMC Funding receives and reviews the servicing package.
      • CMC will provide you with a Funding Memo upon review and acceptance of the Mortgage Loan File. If CMC Funding determines that the Mortgage Loan File is not in compliance, cure the deficiencies as stated in chapter 5.2 of the CMC Whole Loan Servicing Transfer Manual. 
        Check out our video demo on uploading the servicing file (Coming soon!)
    3. Notify third-party service providers of a change in servicer.
      • Private Mortgage Insurance: For any Serviced Loan requiring Private Mortgage Insurance (PMI), you must make required insurance disbursements on loans prior to the effective servicing transfer date. Notification of change of servicer must be sent to the PMI carrier no later than 15 calendar days prior to the effective service transfer date as shown in Exhibit 11 of CMC Funding’s servicing manual.
      • Homeowner’s or Hazard Insurance/Flood Insurance: If an insurance policy is not in the name of CMC Funding, notify the Borrower’s insurance carrier to change the mortgagee clause as shown in Exhibit 9 (Hazard) or Exhibit 10 (Flood) of CMC Funding’s servicing manual. This mortgagee clause change notification must be sent to the insurance carrier no later 15 calendar days prior to the effective date of servicing transfer of the loan.
      • Life of Loan Flood Certification: Supply CMC Funding with the flood determinations for all Serviced Loans. You must notify the flood determination company of the change of servicer information as shown in Exhibit 7 of CMC Funding’s servicing manual. 
      • Tax Information Sheet (Exhibit 8): Notify taxing authority where future tax bills are to be mailed. The Tax Bill Information sheet must be delivered for each serviced loan, regardless of whether or not an escrow account is established. You are responsible for the accuracy of this form. Any tax bills received after the sale should be forwarded in accordance with the CMC Whole Loan Servicing Transfer Manual.
    4. Provide the original final/trailing documents to CMC Funding within 90 days of the MPF funding date.
      • Use the Recorded/Final Documents Checklist (found in Exhibit 6 of the CMC Whole Loan Sale Transfer Manual) and attach it to the final documents submitted for each serviced mortgage. Final documents may include: 
        • Recorded mortgage
        • Recorded assignment or recorded MOM mortgage
        • Title policy
        • For Government Only: Copy of government insurance certificate (the original must be shipped to the Document Custodian for “final certification” within 12 months of the funding date). Proof of government agency insurance or guaranty must be provided.
      • Overnight the documents to CMC Funding’s document custodian:
        BNY Mellon
        2322 French Settlement Road, Suite 100
        Dallas, TX 75212-6034
      • Questions related to shipping the final/trailing documents can be directed to CMC Funding’s Document Control team at shipping@cmcfunding.com.
    5. Upload a copy of the final/trailing documents via the eMPF website.
      • In addition to the delivery of the original documents to Bank of New York Mellon, you must also upload copies of the final/trailing documents to the MPF Provider through the PFI Document Upload Utility within the eMPF website. 
        • Documents delivered electronically through the eMPF website must be in a .pdf format.
        • All documents should be saved into one file.
        • The PFI Document Upload functionality can be found under the Upload header of the eMPF website. Select “Servicing Transfer” from the Document Category menu. Select the applicable Serviced Loan. Under the “Final Doc Upload” browser, browse for the Recorded/Final Documents. Once the Recorded/Final Documents have been selected, click the submit button for document submission. When the Recorded/Final Documents have been successfully uploaded the current date will appear under the Final Doc column.
          Check out our video demo on uploading final/trailing documents (Coming soon!)

    Step 9: Custody Reports

    Overview

    Custody reports provide you with the status of the loans submitted to the document custodian for certification. 

    You are required to have your custody package certified by the document custodian (Wells Fargo) within seven (7) calendar days of the loan being purchased by MPF®

    You will find the MPF exception process very different from other investors you work with. MPF does not delay the purchase of your loan due to exceptions. MPF actually purchases the loan before you deliver the custody package to the document custodian and the servicing file to CMC Funding.

    Your Responsibilities

    1. Monitor custody reports.
    2. Review for exceptions.
      • Monitor the Certified Loans report. This report shows you a list of loans reviewed and accepted by the Document Custodian. If your loan is showing on this report, there were no exceptions and your custody report is accepted.
      • If your loan was not on the Certified Loans report, view the Initial Loans Funded - Not Reviewed report. This report means that your loan has not yet been reviewed by the Document Custodian.
      • If your loan is not showing on the Certified Loans report or the Initial Loans Funded - Not Reviewed report, view the Initial Document Exceptions report. This report will notify you of any discrepancies between the loan presentment data/XML data (“scheduled information”) and the information delivered in the custody package. You must determine which information is correct: the “scheduled information” or the document custody package, and clear all exceptions to receive the initial certification
        • If the scheduled information is incorrect, you must complete either the electronic “MPF Schedule Correction (Form OG7)” or the paper version and submit it to the custodian.
        • If the custody package is incorrect, you must request the document back from the custodian by faxing Wells Fargo the “Request for Release of Documents (Form SG340).”
          • The collateral file will be returned using PFI’s overnight courier.
          • Correct/replace the document and return the file to Wells Fargo via overnight mail.
            Wells Fargo Bank, NA
            MPF Program
            751 Kasota Avenue
            Minneapolis, MN 55414-2842
      • In addition to correcting the data, some corrections will require the funding to be reversed and refunded:
        • Loan amount
        • First payment date
        • Interest rate
    3. Manage custody fees charged by the Document Custodian.
      • There are two custody reports which will show the fees charged to you from the document custodian for correcting exceptions:
        • Uncertified Loan Fees (initial invoice and a final bill)
          • Shows fees for files delivered/certified after the 7 day requirement
        • Exception Fees (initial invoice and a final bill)
          • Shows fees for exceptions found by the document custodian
      • These initial billing reports are posted shortly after month end; the final billing report is posted just prior to the 18th of each month and will reflect the amount that will be charged to your FHLBDM account in eAdvantage. Remember to have sufficient funds in this account to cover these costs, as insufficient funds will result in an overdraft fee.
      • For New PFIs Only: MPF will not charge exception fees within the first 60 days from receipt of the first collateral file or receipt of the first 100 collateral files (whichever comes first).

    Uncertified loan fees will be assessed after 7 calendar days

    Learn more about custody fees

    Step 10: Quality Control

    Overview

    Now it's time to ensure your mortgage production continues to operate at a high level.

    You should conduct quality control reviews to evaluate the investment quality of your home loans, as well as detect possible fraud and false representation. 

    This step outlines the guides for a Quality Control (QC) program for Mortgage Loans originated and serviced under the MPF® Program. (Refer to MPF Guide Chapter 8.) You must perform the QC duties in compliance with the MPF Guide.

    There are 2 types of Sample Selections needed:

    • Pre-Closing
    • Post-Closing

    Your Responsibilities

    1. Randomly select loans for quality control audit that meet the requirements of the MPF Guide.
      • The MPF Guide states the sample size must be no less than 10 percent. Choose either:
        • 10% of your residential 1-4 family mortgage production;
        • 10% of your secondary market 1-4 family mortgage production; or
        • 10% of all your MPF loans
      • A review appraisal will be required on 10% of the loans selected for QC Audit.
        • A desk review must be completed by someone experienced in analyzing residential mortgage appraisals for the remaining loans.
      • Each loan selected for post-closing review must have a new tri-merged credit report. 
      • Two types of reviews are required:
        • Random – full file review (based on the 10% rule)
        • Targeted – review one element of the loan file (these are in addition to the 10% rule)
      • A comprehensive review is required for 2 stages of the closing process:
        • Pre-Closing
        • Post-Closing
    2. Meet the requirements of the MPF Guide for both pre and post-closing reviews.

    CMC Funding's Responsibilities

    1. Conduct Servicing audit.
    2. Conduct Early Payment Default audits.
    3. Share any high level concerns.