Training Overview

A couple things to keep in mind:

• The training modules are meant to follow a general best practice process flow.
• You are responsible to originate, process, underwrite and close in your institution’s name; following standard secondary market procedures and the MPF Guides.
• The MPF Program requires the use of agency (Fannie/Freddie) documents for origination through closing.
• Review and familiarize yourself with the MPF Guides.

Tip: There are several MPF websites available to you. Learn more. 

Tip: If you find an MPF closing package within your doc prep system; know this was not created or approved by the MPF Program.

Your interaction with MPF in the loan process will include:

• Providing loan information to MPF via Loan Presentment using one of the two options available to you.
• Pricing and locking the loan using the eMPF website.
• After disbursing loan proceeds and prior to price expiration, you will sell MPF the loan using eMPF. 
• The custody folder is to be delivered to and certified by the MPF Document Custodian within seven calendar days of purchase by MPF.
• The custody folder is to be delivered to and certified by the MPF Document Custodian within seven calendar days of purchase by MPF.
  • You will monitor the custody reports to be sure the loan is certified, making corrections as necessary.

Note: The MPF Provider will send a report by the 25th of the month if there are current delinquencies. Contact Colonial for details to help estimate potential loss (i.e. payoff figures and current value) and share the information internally to understand the impact to Credit Enhancement obligations should a loss occur. For loans severely delinquent or approaching Foreclosure Sale, it may be an option to attend the sale and buy the mortgage loan back for more flexibility with managing associated expenses. 

Colonial as servicer:

• You will monitor the custody reports to be sure the loan is certified, making corrections as necessary.
• As a servicing PFI you will keep the servicing file.
  • Colonial purchases the servicing and will board the loan onto Colonial's servicing system. 
  • The borrower will be provided with Colonial's payment options. 
  • Review the Colonial Concurrent Servicing Sale Manual for servicing requirements.
  • Colonial will pay the SRP once a month for loans boarded on their system the previous month.
  • Colonial will charge the following fees for each serviced mortgage and will net the fees from the SRP due to the selling PFI for the Serviced Mortgage: 
    • Tax Service Fee: $89
    • Processing Fee: $100
    • Escrow Waiver Fee: 0.25% of the unpaid principal balance at the time of sale to MPF