MPF® Traditional Training:Specialized Loan Servicing

Selling & Delivery

Selling

It's time to reap the rewards of selling your mortgage through the MPF® Program.

Now that you've closed and disbursed, you will need to sell the loan to MPF. Loan funding is a two-step process:

1. MPF purchases the Loan.

  • Your loan will be purchased by MPF the same day you request funds via the eMPF website.
  • Funding is an overnight transaction; even though the loan funds the same day, the funds will show in your eAdvantage account on the following day. eAdvantage is your banking website with Federal Home Loan Bank of Des Moines.
  • You can access the loan proceeds on the day you request funds by contacting the FHLB Des Moines MFS Wire Department.

2. SLS purchases the servicing.

  • The Servicing Released Premium (SRP) will be paid to you by SLS.
  • Once the servicing file is reviewed and accepted, SLS will issue a funding memo to the designated funding person.
    • During the MPF application process, your institution completed the “Selling PFI Information Sheet”, which provided a Funding contact person and account information where the SRP will be deposited.
    • The funding contact person must review and approve the funding memo (do not change the subject line). Approval means the PFI agrees with the SRP calculation. Once approved, the funds will be deposited/sent via ACH to the designated account, usually within two business days.

Prior to Beginning the Funding Process

  • You must have the delivery commitment (lock) number found on the delivery commitment confirmation;
  • Loan must be closed and disbursed; and
  • Loan data must be submitted in eMPF and consistent with the documentation in the loan file.
    • If any data is not consistent, correct and resubmit.

    Reminder: If selling MPF a seasoned loan, see Traditional SG 14.1.

  • The interest calculation is based on the net/pass-thru rate (note rate less 25 bps) using 30/360.
    • 30/360 is a standard calculation for secondary market loans. This means that each loan payment reflects 30 days of interest regardless of the day the payment is made and regardless of the number of days in a month (i.e., it doesn't matter if it is February or July, it will always be calculated with 30 days of interest).

Tip: See how loan funding is calculated

Tip: See Sample Funding calculation with Interim Interest

Tip: See Sample Funding calculation with Accrued Interest

Your Responsibilities

  1. Submit funding request via the eMPF website between 8:30 AM - 3:30 PM CT.

    Important Reminder: You must use the same method to fund as you used for loan presentment (i.e., if you used automated submission for loan presentment, you must use automated submission to fund).

    Automated (Batch) Submission:
    Utilizes the Fannie Mae 3.0 ULDD (can be used to fund single or multiple loans)
    View Video Demo

    Manual Submission:
    Manual input of data fields (can be used to fund a single loan only)
    View Video Demo

    You will receive a "Transaction Confirmation and Loan Funding Activity Report" via email on the day you request funds.

  2. Receive funds from MPF.

    • MPF credits your DDA account in eAdvantage on the date you request funding via the eMPF website. Because this is an overnight transaction, the activity will not show in your eAdvantage DDA until the following day..
    • You or your accounting staff will need to move loan funds from eAdvantage to your own internal accounts via ACH or wire transfer. Types of activity you will see in your eAdvantage DDA account include:
      • Loan fundings
      • Credit enhancement fees
      • Extension fees
      • Pair-off fees
      • Over-delivery/Price adjustment fees
      • Custody fees

    Tip: Find out how SRP is calculated.

    Tip: SLS will make the SRP payment following the review and acceptance of the imaged servicing file. See Step 8 for additional details.