MPF® Traditional Training:Colonial Savings

Training Courses  
Selling & Delivery

Closing

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 steps you will need to complete to close your loan.

Your Responsibilities

  1. Meet Colonial's requirements. 

    • Review the Concurrent Servicing Sale Manual for Colonial Savings for servicer specific requirements.
    • Collect the Colonial fees:
      • Tax Service Fee: $89.00
      • Conventional Loan Boarding Fee: $100.00
      • Escrow Waiver Fee: 0.25% of the UPB at time of sale
        • Escrows cannot be waived for loan amounts less than $50,000, LTVs > 80%, or FICO < 620
    • Provide borrower with the Selling PFI Good-bye/Colonial Savings Welcome letter. (See exhibit 4 in the Colonial Concurrent Servicing Sale Manual).
    • Pay all taxes, delinquent taxes or insurance payments due within 30 days before or after the sale date.
    • Complete the Escrow Funds Reconciliation form (Exhibit 8 of the Colonial Concurrent Servicing Sale Manual).
    • Complete the Tax Information Sheet form (Exhibit 10 of the Colonial Concurrent Servicing Sale Manual).
    • Wire the escrow funds to Colonial Savings as required by Colonial within one (1) business day of being sold to MPF.

    Tip: Closer/funder/post-closer responsibilities vary from PFI to PFI; you will need to determine where the responsibility for Colonial forms falls within your institution.

  2. Proceed with your normal closing procedures.

    • Meet all federal and state regulations.
    • 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 says 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 based on state requirements.
        • You may use a 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)

      • Tip: If tax transcripts were not obtained for the underwriting decision, the borrower(s) must sign a 4506C at closing.

  3. Close with the borrower(s).

Colonial's Responsibilities

  1. The SRP will be paid to you by Colonial.

    • Colonial will net the required fees from the SRP. You will be required to wire the funds within 2 business days. See Selling tab for more information.

  2. Once the loan is boarded onto Colonial's system, the borrower will be provided with Colonial's payment options.