MPF® Traditional Training:Iowa Bankers Mortgage Corporation

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 specific 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 IBMC Concurrent Servicing Sale 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 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.
      • 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; and

  3. If escrow is waived, Borrowers must sign the Escrow Waiver Agreement (Exhibit 7 of the IBMC Concurrent Servicing Sale Manual).

    • Cannot waive escrows when LTV is greater than 80%

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 or the 5th of each month
      • Bi-weekly service: Borrowers account drafted every other Friday
        • $2.00 per transaction and a $50.00 one-time setup fee
        • 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
        • $5.00 transaction fee
  2. IBMC will charge the following fees for each Serviced Mortgage and will net the fees from your SRP for each Serviced Mortgage sold:

    • Tax Service Fee: $79.00
    • Processing Fee: $150.00
    • Escrow Waiver Fee: 0.25% of the unpaid principal balance at the time of sale to MPF (Also charged to the borrower if escrow is waived at any point during the life of the loan)