MPF® Traditional Training:Colonial Savings

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 sell your loan.

How it Works

  1. Proceed with your normal closing procedures.

    • Prepare the closing documents.
      • The loan will close in your institution’s name.
      • MPF does not require any program specific forms.
    • Review the Colonial manual for servicer specific requirements.
    • 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)
  2. Close with the borrower.

Your Responsibilities

  1. Meet all federal and state regulations.

  2. Pay all taxes, delinquent taxes or insurance payments due within 30 days before or after the sale date.

  3. 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.

    • Escrows cannot be waived if:
      • Loan amount is less than $50,000
      • LTV is greater than 80%
      • Any FICO score is less than 620
    • For Government Refinances, see Colonial Concurrent Servicing Sale Manual 4.2 for additional requirements

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.

    • Once the loan is boarded onto Colonial's system, the borrower will be provided with Colonial's payment options. (See Colonial Concurrent Servicing Sale Manual); and
    • Colonial Savings 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: $89.00
      • Processing Fee: $100.00
      • Escrow Waiver Fee: 0.25% of the unpaid principal balance at the time of sale to MPF