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.
Monitor custody reports.
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 file 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 remains on this report for more than a couple of days, you may want to check the overnight tracking number to ensure the Document Custodian received the file.
- 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 any information within the custody package is inconsistent with the information you submitted to MPF at the time your loan was purchased, you must email the MPF Custody Department at MPFCustody@fhlbc.com to cure any defects.
- If the custody package is incorrect, you must request the document back from the custodian by emailing the Request for Release of Documents (Form SG340) to MPFReleaseTeam@wellsfargo.com.
- 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
751 Kasota Avenue
Minneapolis, MN 55414-2842
- In addition to correcting the data, some corrections will require the funding to be reversed and refunded. These data fields will change how the loan is funded. The data fields requiring reversal are:
- Loan amount
- First payment date
- Interest rate
Manage custody fees charged by the Document Custodian.
- There are two custody reports which will show the fees charged to you by the document custodian for correcting exceptions:
- Uncertified Loan Fees (initial invoice and a final bill)
- Shows fees for files not certified within the 7 calendar 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).
Tip: Learn more about custody fees.