As borrower’s payments are collected, the funds are held in the MPF P&I Custodial account (the DDA set up at your institution when you applied for the MPF Traditional product).
- PFI monitors the P&I custodial account daily.
- On any day the P&I custodial account balance exceeds $2500 (net of the servicing fees), transfer funds to your MPF A/A account via the eAdvantage banking site.
- Any amount remaining in the account on the first day of the month following cut off (regardless of the balance), must also be transferred to MPF A/A account.
- The MPF A/A account is set up exclusively for P&I remittance.
- Transfer funds by 10:00 AM (CT) on the next business day following receipt of the funds – the earlier the better.
- The MPF Servicing Guide says 2:00 PM, best practice is 10:00 AM particularly when funds are sent via ACH.
- Non-compliance will result in assessment of penalty fees.
You have three remittance options
- Recurring ACH
- Transfer funds from a FHLB Des Moines account to the account designated exclusively for P&I remittance (MPF A/A account).
P&I remittances will accumulate in the MPF A/A account (non-interest bearing account).
- Once a month the account will be debited based on the reports submitted to and reconciled to with the master servicer.
- A debit will occur on the 18th of each month, or the business day prior to if the 18th is a non-business day.