MPF® Traditional Training:Colonial Savings

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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 directed in the Colonial Concurrent Servicing Sale Manual within one (1) business day of the date the loan is 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 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. 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.