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:

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.

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.
- SLS will net the required escrow balance and fees from the SRP. If netting results in a negative SRP, you will be required to wire the required funds within 2 business days.
- 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.

Reminder: There is an SLS overlay to the MPF Selling Guide 14.1 on seasoned loans. Section 3.3.1 of the SLS MPF Traditional Whole Loan Servicing Manual indicates the maximum allowable applied payment for purchase by SLS is two. In addition, see section 3.3.1 located after 3.4 (there are two 3.3.1 due a numbering error and both apply).
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