MPF® Traditional Training:Iowa Bankers Mortgage Corporation

Training Courses  
Selling & Delivery

Closing

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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 IBMC requirements.

    • Review the IBMC Concurrent Servicing Sale Manual for servicer specific requirements.
    • Collect the IBMC fees:
      • Tax Service Fee $83.00
      • Processing Fee: $150.00
      • Escrow Waiver Fee: 0.25% of the UPB at time of sale to MPF.
        • Escrows are required for LTVs > 80%.
        • A two-month escrow cushion is required for each escrowed item.
        • No cushion is required for Private Mortgage Insurance (PMI), FHA Premiums or RD Guaranty Premiums.
    • Pay all taxes, delinquent taxes or insurance payments due within 30 days before or after the sale date.
      • If escrow is waived, borrower(s) must sign the Escrow Waiver Agreement (Exhibit 8 of the IBMC Concurrent Servicing Sale Manual).
    • Complete the Tax Information Sheet (Exhibit 10 of the IBMC Concurrent Servicing Sale Manual).
    • Deposit escrow funds to the designated DDA account (after the first loan was locked, IBMC contacted your institution to complete the Selling PFI Information Sheet, which included the DDA account).
    • Provide borrower with the Selling PFI Good-bye / IBMC Welcome Letter (Exhibit 4 of the IBMC Concurrent Servicing Sale Manual). 

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

  2. Proceed with your normal closing procedures. 

    • Meet all state and federal 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, 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.
        • If you are a MERS member, you may use a MOM mortgage.
      • 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 you find an MPF closing package within your doc prep system, know this was not created or approved by the MPF Program.

    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).

IBMC's Responsibilities

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

    • IBMC will offer the borrower the following payment options:
      • Sure pay-monthly draft: ACH of monthly payment on the 1st, 5th, or 12th of each month
      • Bi-weekly service: Borrowers account drafted every other Friday
        • $2.00 per transaction
        • In the ‘welcome letter’ from IBMC, the borrowers will receive a bi-weekly comparison letter which indicates how much interest and how many months they could save using the bi-weekly service
      • Electronic payments at the IBMC website

  2. Once IBMC boards the loan on their servicing platform, they will draft/ACH the escrows funds from the designated account.