MPF® Traditional Training:Iowa Bankers Mortgage Corporation

Training Courses  
Originating & Underwriting

Pricing & Locking a Loan

Benefits of MPF Traditional pricing include:

  • No additional points for low loan amount;
  • No additional points for second homes;
  • No additional points for cash out refinances;
  • No loan level price adjustments; and
  • No MPF delivery fees.

Your Responsibilities

  1. Determine your borrower's interest rate. 

    • Access pricing at the eMPF website.
      • Rate sheets are posted between 8:30 AM and 3:30 PM (CT).
      • Price the loan using the servicing remittance option for your master commitment. 
      • When selecting the MC# from the MC list, your remittance option is provided.
      • Servicing remittance option for loans serviced by IBMC will be Actual/Actual.
      • Pricing is subject to change based on bond market movement. 

    Tip: How to price and read the MPF Price Sheet.

  2. Review IBMC’s servicing release premium (SRP) schedule.

    • The SRP paid by IBMC is based on the SRP fee schedule in effect on the day the loan was locked.
    • IBMC pays the SRP once a month for all loans boarded in the previous month.
    • The SRP will be paid by the fifth business day of the month.
    • Each month, IBMC will provide a loan level detail report to support SRP payments.
    • View IBMC's SRP schedule. 

    Tip: Find out how SRP is calculated.

  3. Loans can be locked via the eMPF website between 8:30 AM and 3:30 PM (CT).

    • With MPF mandatory delivery, you will not lock a specific borrower or property address; you will only lock a dollar amount, term, interest rate and lock period.
    • What you’ll need:
      • Master Commitment Number- can be selected from the MC list
      • Delivery Amount ($)- can be for a single loan or a bulk delivery (multiple loans)
      • Product- choose 15, 20 or 30 year pricing as the product type
      • Commitment Term/Expiration Date
      • Note Rate (%)
    • Once your lock is submitted and confirmed within eMPF, you will be emailed a lock confirmation.
    • Additionally, within the DC confirmation screen, you have the option to print the confirmation and email the confirmation to someone else in your institution, provided they are on the dropdown list.
    • It is recommended you print the confirmation for the loan file as it will be needed later in the process.
    • Always proof your confirmation for accuracy.
    • You can deliver multiple loans using one Delivery Commitment (DC) number.
    • You cannot use multiple delivery commitments for one loan.
    • You can over-deliver a loan amount.
    • The next business day after your loan is locked, you will receive an email confirmation from IBMC providing you with an IBMC loan number and a MERS Mortgage Identification Number (MIN) to be used by your closer and/or shipper. The IBMC loan number is not used on your closing documents. You will use the IBMC loan number if you need to prepare any change of servicer notices. It is also used as the loan number for the MERS registration, and when you upload the servicing file and the trailing documents to the IBMC website. If your delivery commitment results in the delivery of more than one loan, contact IBMC for additional loan numbers and MERS Min numbers.

    • Learn more about MPF Traditional Locks and Tolerances.
      View Video Demo

    • Lock Extensions
      • There will always be an extension fee regardless of how the bond market has moved.
      • Extensions can be for one day at a time or for multiple days; an extension cannot exceed a total of 30 calendar days.
      • Extension fees will be calculated and quoted to you; you will have 60 seconds to accept or decline the quote. (For quotes not accepted within 60 seconds, simply resubmit.)
      • Extension fee will be charged to your general Demand Deposit Account (DDA) within eAdvantage (your institution's banking site with FHLB Des Moines) on the date the extension is accepted.
      • You will want to have funds in your general DDA to cover the extension fee.
      • To request an extension, go to the eMPF website: Transaction tab | Delivery Commitment | Extensions.
      • MPF Traditional Conventional and Government delivery commitments may be extended until 4:00 PM CT. This allows an additional 1/2 hour to obtain an extension. When MPF announces an early close for deliver commitments and funding activity, extensions will have the same earlier cut-off time (typically 1:00 PM CT).
        View Video Demo
     
    • Loan Amount Reductions Prior to Expiration 
      • A delivery commitment may be reduced prior to expiration using the eMPF website: Transaction tab | Delivery Commitment | Reduce. (A reduction can also be accomplished by calling the MPF Service Center.)
      • Pair-off fees are charged on a mandatory delivery commitment when the amount will be reduced below the allowable 5% tolerance. (Only do the reduction if the new dollar amount is below the tolerance.) For DCs greater than $2 million, the tolerance is 1%.
      • When the amount delivered falls outside of the lock tolerance, the pair-off fee will be based on the full reduction amount.
      • Pair-off fees are calculated by comparing the price at the time the DC was issued to the price at the time of pair-off (based on the days left in the DC).  If the current price is better there will be a pair-off fee.
      • Pair-off fees will be calculated and quoted via the eMPF Delivery Commitment reduction screen once submitted. You will have 60 seconds to accept the quote. 
        • Reduction fees will be charged to your general DDA within eAdvantage on the date the reduction fee is accepted.
        • You will want to have sufficient funds in your general DDA to cover this fee. 

      • Tip: See MPF Traditional Loan Amount Reduction examples.

        View Video Demo

    • Pair-off At Expiration
      Pair-offs are charged when a mandatory delivery commitment is delivered at less than 95% of the original amount. Pair-off fee will be calculated by comparing price at the time of execution to the current price (based on the days left in the delivery commitment) at the time of pair-off.
      • Pair-off fees will be charged for loans delivered at less than 95% of the original Delivery Commitment.
      • If you sell MPF a loan prior to price expiration, the fee will not be calculated/charged till the last price sheet of the day on the day of expiration. (The reason for this is DC’s can be over delivered by greater of 1% or $100,000.00)
      • These fees are charged at expiration with the benefit of tolerance.
      • Pair-off fees will be charged to your general DDA within eAdvantage, on the date the day of expiration.

      Tip: See MPF Traditional Pair-Off Fee examples.

    • Over-Delivery / Price Adjustment Fee
      Occasionally, the lender or borrower may decide to increase the loan amount to an amount that is greater than maximum allowable under the existing DC. This may occur for various reasons, including when a borrower lowers their down payment or when a mortgage is substituted to prevent or reduce a pair-off fee.
      • An over-delivery fee (also known as a price adjustment fee) will be charged on amount delivered in excess of 105% of the original delivery commitment.
      • The fee will be based on the last price sheet of the day on the day the DC is over-delivered.
      • A delivery commitment (lock) can be over-delivered by the greater of 1% or $100,000 but cannot exceed the maximum loan limits.
      • The amount charged to your general DDA account will be based on the last price sheet of the day on the day the loan is purchased by MPF.

      Tip: See MPF Traditional Over-Delivery / Price Adjustment Fee examples.

    • Canceling a Delivery Commitment
      When a loan is not going to close, there are three options:
      • You can substitute a different loan or multiple loans into the DC.
        • If the loan amount is smaller, consider reducing the DC amount prior to selling the loan/loans to MPF.
      • The DC can be reduced by the full amount of the DC, resulting in a zero DC amount. If there will be a pair-off fee charged, it will be calculated on the full amount of change using the current price at the time of the reduction transaction.
      • Let the DC expire. When a DC expires, the pair-off fee will be calculated on the difference between the original DC amount less the tolerance and the amount sold to MPF. The fee will be calculated based on the last price sheet of the day.