MPF Xtra Servicing Released (IBMC)

Overview

How it works

Complete this training and begin taking advantage of the MPF Xtra® program!

Tooltip  Indicates helpful hint is available. Click for additional info.

Your responsibilities

  • Confirm each loan meets the requirements of the applicable MPF Product guide
  • Originate, process, underwrite and close the mortgage loan
  • Meet program timeframes
  • Sell the loan to MPF
    • Deliver the custody file to the MPF Document Custodian 
  • IBMC purchases the servicing
    • Deliver the servicing file to IBMC 
    • Provide final/trailing documents to IBMC
  • Meet MPF quality control requirements 

IBMC's responsibilities

  • Board the loan onto IBMC’s servicing system
  • Apply and process the borrower’s mortgage payments
  • Manage the borrowers’ escrow accounts and provide annual escrow analysis
  • Pay the Servicing Released Premium (SRP) to you on a monthly basis
  • IBMC will charge the following fees for each serviced mortgage and net the fees from the SRP:
    • Tax Service Fee: $65.00
    • Processing Fee: $150.00
    • Escrow Waiver Fee: 0.25% of the unpaid principal balance at the time of sale to MPF

Step 1: Borrower Application

Overview

Congratulations! Your borrower has trusted you to originate their home loan.

With you as their mortgage professional, the Borrower will complete the loan application and provide all requested documentation. Let’s get started!

Your responsibilities

  1. Determine if your borrower’s loan meets the MPF program requirements found in the MPF Guides.
    View our Loan Eligibility Webinar.
  2. Assist the borrower in completing the loan application.
    Refer to the Uniform Residential Loan Application - Fannie Mae Form 1003.
  3. Send out initial disclosures (i.e., TIL, Loan Estimate, etc.).

Step 2: Processing

Overview

Now's the time to complete the processing steps that ensure your borrower and the property meet the MPF requirements.

You will process the MPF loan as you would loans for other secondary market investors. 

Want to know more? View our Loan Eligibility and Processing Basics webinars.

Your Responsibilities

  1. Run your automated underwriting system (if applicable).
  2. Gather borrower information. 
  3. Validate the information provided by the borrower.
  4. Order an Appraisal.
  5. Order the Title search.
  6. Order a Life of Loan Flood Certification.
    A flood zone determination certificate with life-of-loan coverage must be obtained from one of IBMC's approved vendors.{Tooltip}
  7. For LTVs over 80%: Obtain private mortgage insurance from our list of approved vendors.{Tooltip}
  8. If using an Automated Underwriting System (AUS): When loan data is updated and the AUS is submitted for the final time, loan information should match the final supporting documentation.

Step 3: Pricing & Locking a Loan

Overview

Determine the borrower's interest rate and loan pricing. Lock the loan terms.

MPF Xtra® utilizes live pricing. The price schedules available at the eMPF website are indicative pricing. Indicative pricing tells you what the price was at a set point in time. Indicative price schedules are updated 4 times a day.

A live price quote is only available using the eMPF delivery commitment/locking process. Once the quote is obtained, you will cancel the quote; only “confirm” the quote if you want to lock the loan. {Tooltip}

Your Responsibilities

The MPF Xtra product offers both Mandatory and Best Efforts delivery optionsYour master commitment determines the pricing option chosen by your institution.

Click on a pricing method below to learn more:

Mandatory Pricing
  1. Determine any Loan Level Price Adjustments (LLPAs).{Tooltip}
    • For LLPAs that apply to all Mortgage Loan types, see Fannie Mae’s Standard LLPA Matrix.
    • For LLPAs that apply only to DU Refi Plus Mortgage Loans, see Fannie Mae’s Refi Plus LLPA Matrix. The DU Refi Plus LLPAs are in lieu of, and not in addition to, the standard LLPAs.
    • LLPAs are NOT built into the MPF pricing schedules or price quote. When pricing a MPF Xtra loan, you will determine the applicable LLPAs and price up to cover both the LLPA requirement and your institution’s profit margin. If loan characteristics change during the origination process, LLPAs could also change. The actual amount of LLPAs charged will be based on the loan characteristics at the loan funding.

      How to read the MPF Price Sheet

      View the LLPA worksheet

  2. Review IBMC's Servicing Released Premium (SRP) schedule.
    • SRP represents the price to be paid to the PFI for the servicing rights.
    • The amount paid is based on the SRP schedule in effect on the day the loan was locked.
    • The SRP paid by IBMC will be in addition to the price paid by MPF.
    • IBMC reserves the right to change the SRP at any time.
    • 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.
    • Click here to view IBMC's SRP schedule.
      Find out how SRP is calculated
  3. Access pricing on the eMPF website.
    • Mandatory indicative pricing is posted to the eMPF website at approximately 8:30 AM CST each business day and updated several times during the day.
      • If you would like to receive the MPF daily indicative pricing schedule, please send a request with your contact information (including PFI#) to mortgageproducts@fhlbdm.com.
    • Live pricing is available at the eMPF website between 8:30 AM and 3:30 PM (CST) and can be accessed using the delivery commitment process. Do not confirm the price quote unless you intend to lock the loan.
    • There are no overnight price protections.
    • The indicative pricing schedules available at the eMPF website show lock terms of 5, 15, 30, 45, 60 and 90 calendar days; however, when pricing the loan within eMPF, you will lock for the actual number of days you need in a range from 3 to 90 calendar days (this provides you with a pricing advantage because you are not locking for more days than you need).
      • Your MPF funding request must occur no less than 2 days prior to the price expiration date; keep this in mind when selecting your lock term.
      • Example: If you plan to sell the loan to MPF on March 15th, you will select March 17th as your lock expiration date. For tracking purposes, the last day to request funds (March 15th) becomes your expiration date. Your loan must be closed and disbursed prior to requesting MPF purchase/fund the loan.
    • A premium or discount (also known as the agent fee) will be paid at loan funding based on the price you selected when locking your loan.
      • If the agent fee is positive (premium), MPF pays you.
      • If the agent fee is negative (discount), you owe MPF.
    • 15-, 20- and 30-year amortization terms are available.
      • You may contact the MPF Service Center to receive a 10-year price quote. 
    • Loan term in years (odd terms allowed):
      • 120 – 180 month term priced at a 15-year term
      • 181 – 240 month term priced at a 20-year term
      • 241 – 360 month term priced at a 30-year term
    • High balance loans can only be 15- or 30-year terms (odd terms allowed).
    • A high balance loan is a loan in an area of the country having a high cost of housing (Boston, New York, California, Washington, D.C., etc.).
    • The loan is priced based on the loan size:
  4. Loans must be locked via the eMPF website between 8:30 AM and 3:30 PM (CST). 
    • When using a mandatory master commitment, you will not lock a specific borrower or property address. You will only lock a dollar amount, loan term, interest rate and lock period between 3 – 90 calendar days.
    • Once a loan is locked, you will receive a Delivery Commitment (DC) confirmation which will contain a DC number.
      • The DC number will be needed in the funding process, so save the number for future use. We recommend printing a copy of the DC confirmation to keep in the loan file.
      • Review each confirmation for accuracy and immediately contact the MPF Service Center if inaccuracies are found or you need to cancel the lock.
    • If you are unable to deliver the intended loan, you have the flexibility to substitute one or multiple loans into the existing lock. There is also flexibility in the interest rate you deliver. The available interest rate range and pricing will show on your DC confirmation.
      • When you deliver multiple loans into one delivery commitment/lock, you will use the same delivery commitment number for each of the loans.
    • The day after the loan was locked in eMPF, the individual who locked the loan received an email from IBMC providing the IBMC loan number and MERS MIN number. The MERS Min number will be will be needed by the closer/shipper for use on the MOM mortgage or the assignment of mortgage. The IBMC loan number will be used in the delivery of the loan to IBMC. If a delivery commitment is filled using more than one loan, contact IBMC for additional IBMC loan numbers and MERS Min numbers.

      Check out our video demo for locking a loan within the eMPF website

    • Lock Extensions
      • To extend your lock, you must contact the MPF Service Center at 877-463-6673.
      • You may extend the lock term either one day at a time or for multiple days; however, an extension cannot exceed a total of 30 calendar days.
      • There will always be a fee charged for an extension. Extension fees will be calculated and quoted to you by the MPF Service Center; you will have 60 seconds to accept or decline the quote. 
      • Extension fees 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.
    • Loan Amount Reductions
      • Loan amount reduction pair-off fees are charged on a mandatory delivery commitment when the amount delivered is below the allowable tolerance of the committed dollar amount.
      • To reduce the dollar amount of your lock, you must contact the MPF Service Center at 877-463-6673.
      • The MPF Service Center will compare the price at the time the lock was issued to the price at the time of pair-off to determine if a pair-off fee will be due and the amount of the pair-off. Depending on market movement, a pair-off will be either a debit or a credit to your account.
      • When the amount delivered falls outside of the lock tolerance, the pair-off fee will be based on the full dollar amount the delivery is actually below the original locked amount.
      • Reduction pair-off fees will be calculated and quoted to you by the MPF Service Center; you will have 60 seconds to accept or decline 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.
      • Once a lock is reduced, the tolerance rule no longer applies and the new tolerance becomes +/- $50.
        See Loan Amount Reduction examples
    • Pair-off Fees{Tooltip}
      • To get a pair-off fee quote, you must contact the MPF Service Center at 877.463.6673.
      • Pair-off fees are charged on a mandatory delivery commitment when the amount delivered is below the allowable tolerances for the locked dollar amount.
      • The MPF Service Center will compare the price at the time the lock was issued to the price at the time of pair-off to determine if a pair-off fee will be due, and the amount of the pair-off. Depending on market movement, a pair-off will be either a debit or a credit to your DDA account at the FHLB Des Moines eAdvantage website.
      • When the amount delivered falls outside of the lock tolerance, the pair-off fee will be based on the full dollar amount the delivery is actually below or above the original locked amount.
      • Ensure you have sufficient funds in your general DDA to cover this fee.
        See Pair-Off Fee examples
    • Over-Delivery / Price Adjustment Fee{Tooltip}
      • The maximum over-delivery amount is 25 percent of the original commitment amount, up to (but not to exceed) the maximum allowable conforming loan limits.
        • On a commitment of $150,000, the maximum over-delivery is an additional $37,500 (25%) of the $150,000 or $187,500. When the amount delivered exceeds the allowable tolerance (the greater of $10,000 or 2.5%), the pair-off fee will be charged on the full amount the delivery is actually above the original delivery commitment amount.
      • 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.
Best Efforts Pricing

Best Efforts pricing is exclusive to MPF Xtra and requires you to have a Best Efforts-specific master commitment. 

DU Refi Plus and Refi Plus loans are not eligible for Best Efforts delivery; they may only be delivered into a Refi Plus-specific mandatory master commitment.

  1. Determine any Loan Level Price Adjustments (LLPAs).{Tooltip}
    • For LLPAs that apply to all Mortgage Loan types, see Fannie Mae’s Standard LLPA Matrix.
    • LLPAs are NOT built into the MPF pricing schedules or price quote. When pricing a MPF Xtra loan, you will determine the applicable LLPAs and price up cover both the LLPA requirement and your institution’s profit margin. If loan characteristics change during the origination process, LLPAs could also change. The actual amount of LLPAs charged will be based on the loan characteristics at the loan funding.

      How to read the MPF Price Sheet

      View the LLPA worksheet

  2. Review IBMC's Servicing Released Premium (SRP) schedule.
    • SRP represents the price to be paid to the PFI for the servicing rights.
    • The amount paid is based on the SRP schedule in effect on the day the loan was locked.
    • The SRP paid by IBMC will be in addition to the price paid by MPF.
    • IBMC reserves the right to change the SRP at any time.
    • 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.

      Click here to view IBMC's SRP schedule.

      Find out how SRP is calculated

  3. Access pricing on the eMPF website.
    • Best efforts pricing is posted to the eMPF website at approximately 8:30 AM CST each business day and updated several times during the day.
      • If you would like to receive the MPF daily indicative pricing schedule, please send a request with your contact information (including PFI#) to mortgageproducts@fhlbdm.com.
    • Live pricing is available at the eMPF website between 8:30 AM and 3:30 PM (CST) and can be accessed using the delivery commitment process. Do not confirm the price quote unless you intend to lock the loan.
    • There are no overnight price protections.
    • The indicative pricing available at the eMPF website shows lock terms of 5, 15, 30, 45, 60 and 90 calendar days. The MPF Xtra product allows you to lock for the actual number of days you need in a range of 3 to 90 calendar days (this provides you with a pricing advantage; the pricing is based on the actual number of days you need to lock for).
    • Your MPF best efforts funding request must occur no less than 3 days prior to the price expiration date, so keep this in mind when selecting your lock term.
      • Example: If you plan to sell the loan to MPF on March 15th, you will select March 18th as your lock expiration date. For tracking purposes, the last day to request funds (March 15th) becomes your expiration date. Your loan must be closed and disbursed prior to requesting MPF purchase/fund the loan.
    • A premium or discount (also known as the agent fee) will be paid at loan funding based on the pricing you selected when locking your loan.
      • If the agent fee is positive (premium), MPF pays you.
      • If the agent fee is negative (discount), you owe MPF.
    • 15-, 20- and 30-year amortization terms are available (odd terms are not allowed). 25-year terms and odd terms are available for Best Efforts delivery commitments. 
    • High balance loans can only be 15- or 30-year terms (odd terms are not allowed).
      • A high balance loan is a loan in an area of the country having a high cost of housing (Boston, New York, California, Washington, D.C., etc.).
    • The loan is priced based on the loan size:
      • Loans up to $85k
      • >$85k to $110k
      • >$110k to $125k
      • >$125k to $150k
      • >$150k to $175k
      • >$175k (including high balance loans)
  4. Loans can be locked via the eMPF website between 8:30 AM and 3:30 PM (CST). 
    • When using a best efforts master commitment, you lock a specific borrower and property address.
      • Accuracy in providing loan terms, borrower and property information is important. Changes to this information could require you to cancel your existing lock and relock the loan. If the loan is relocked within 30 days, the relocked loan will be subject to worst case pricing.
    • Once a loan is locked, you will receive a Delivery Commitment (DC) confirmation which will contain a DC number.
      • The DC number will be needed in the funding process, so save the number for future use. We recommend printing a copy of the DC confirmation to keep in the loan file.
      • Review the confirmation for accuracy and immediately contact the MPF Service Center if any inaccuracies are found.
    • The day after the loan was locked in eMPF, the individual who locked the loan received an email from IBMC providing the IBMC loan number and MERS MIN number. The MERS Min number will be will be needed by the closer/shipper for use on the MOM mortgage or the assignment of mortgage. The IBMC loan number will be used in the delivery of the loan to IBMC. If a delivery commitment is filled using more than one loan, contact IBMC for additional IBMC loan numbers and MERS Min numbers.
  • Best Efforts Basics
    • A Best Efforts lock cannot be converted to a mandatory lock nor can a mandatory lock be converted to best efforts lock.
      • Best Effort locks are borrower and property specific – substitutions are not allowed.
      • Only one loan may be delivered under each lock.
      • When a loan is not going to close, contact the service center to cancel the Delivery Commitment if there is a chance you will be re-locking the same loan (same borrower with the same property).
        • If you re-lock the same loan within 30 days of expiration or cancellation (whichever is the earlier), the loan will be subject to worst case pricing.
        • If you re-lock the same borrower with a different property address, you must have a new DU case number to avoid worst case pricing.
        • If a loan is delivered and determined to be ineligible, it will be subject to a pair-off fee based on worst-case pricing.
          Check out our video demo for locking a loan within the eMPF website
  • Best Efforts Lock Changes
    • At the time of funding (selling the loan to MPF), the lock terms must match the loan terms.
    • The interest rate and/or the loan term can be changed without a fee for a best efforts lock.
    • The dollar amount can be changed without a fee as long as the lock stays in the same size grid and stays within the same maximum loan amount grid (i.e., conforming vs. high balance).
    • Lock changes must be called into the MPF Service Center at 877.463.6673 Option 3.
    • The loan will be re-priced based on the new interest rate and/or term using the original price sheet.
  • Best Efforts Extensions
    • MPF Xtra extensions must be requested by contacting the MPF Service Center, 877.463.6673 Option 3.
    • There will always be an extension fee. Extension fees will be calculated and quoted to you by the MPF Service Center. You will have 60 seconds to accept or decline the quote.
    • Best Efforts Delivery Commitment may be extended prior to expiration for up to and no more than 30 calendar days.
      • You may extend the lock term either one day at a time or multiple days; however, the cumulative extensions cannot exceed a total of 30 calendar days.
      • Once this 30 calendar day extension period expires, any subsequent Delivery Commitment requested for the delivery of the identified mortgage will be subject to worst case pricing if the mortgage re-locks within 30 days.
      • After 30 days, the current price sheet will be used.
    • Extension fees will be charged to your general Demand Deposit Account (DDA) with eAdvantage (your institution's banking site with FHLB Des Moines) on the date the extension is accepted.
    • For Closed Mortgages in the funding process:
      • If the loan funding does not occur prior to the Best Efforts Delivery Commitment expiration date, the lock will automatically be extended 1 day at a time until the loan funds. The MPF Xtra guide states that a funding in process will be extended for 5 days, but actual practice is 1 day at a time.
      • If you are requesting funding on the expiration date, contact the service center and get and extension.
      • If a lock is cancelled after the loan funding request has been submitted, the lock will be subject to a pair-off fee.
        See how to calculate extension fees

Step 4: Underwriting

Overview

The loan is ready for underwriting!

Once a package with all processed verifications and documentation is completed, the file is sent to the underwriter. The underwriter is responsible for determining whether the package is deemed an acceptable loan by analyzing the 5C’s of underwriting:

1. Capacity: How much can the Borrower afford?
Consider: DTI, Cash Flow, Occupation, Employment History, Income Stability, Timing of Repayment, Continuance, etc.

2. Capital: What will the borrower invest and have for reserves?
Consider: Checking/Savings, Investments, Liquidity, Cash for Close, Reserves, Overdraft/Non-sufficient Funds, etc.

3. Collateral: In the event of a default, what is the property worth?
Consider: LTV, Marketability, Appraisal Discrepancies, Liens, Easements, Judgments, etc.

4. Conditions: What are unique factors surrounding the loan?
Consider: Market Conditions, Loan Purpose, Use of Cash Out (if applicable), etc.

5. Character: Will the borrower repay the loan?
Consider: Borrower Attitude, Payment History, Credit Score, etc.

Mortgage loans can be underwritten manually or with Desktop Underwriter® (DU®) in accordance with the Fannie Mae Selling Guide. In addition, Loan Product Advisor may be used with some additional criteria as explained further in the MPF Xtra Selling Guide Chapter 4.3.

    Your Responsibilities

    1. Underwrite the loan using either an Automated Underwriting System (AUS) or manually.
      • For loans underwritten using Fannie Mae’s Desktop Underwriter® (DU®) or Freddie Mac’s Loan Product Advisor℠ (LPA℠) automated underwriting system, follow the AUS feedback requirements for the applicable GSE.
      • The only MPF Program requirements that supersede DU and LPA requirements are the following:
        • Occupancy Requirements
        • Property Type Eligibility (for example: Co-ops and investment properties are not eligible for sale under the MPF Xtra product)
        • Products or loan attributes on the ineligible list (See MPF Xtra Selling Guide Chapter 2.3.2)
        • Specific Requirements for using Loan Product Advisor (See chapter 4.3 for additional information)
      • For manually underwritten loans: Originators must comply with Fannie Mae Selling Guide Chapter B3-1, Manual Underwriting.
    2. Determine if the loan meets all of the documentation and eligibility requirements of the MPF Guides.
      • This includes all approval conditions generated on the feedback report (if using an AUS) or any additional conditions the underwriter may require.
      • If more information is needed, the borrower is contacted to supply more information and/or documentation.
      • If the loan is acceptable as submitted, continue on with the next steps in the loan process.

    For additional Underwriting training, please attend our on-demand webinars:
    MPF Loan Eligibility Requirements
    Underwriting: Basics (Part 1)
    Underwriting: Basics (Part 2)
    Underwriting: Advanced

    Step 5: Loan Data Delivery

    Overview

    Loan data delivery (also known as loan presentment) is your method of providing MPF® with the loan details. 

    Accuracy is important. If your loan is chosen for MPF Quality Control review, the auditor will compare the data you provided to the loan file. Any discrepancies will be reported in the final quality control findings.

    Your Responsibilities

    1. Deliver the loan details within the eMPF website between 6:00 AM – 9:00 PM CST.
      • Automated (Batch) Submission is used to submit a single loan or multiple loans.
        • What’s required:
          • Fannie Mae 3.0 XML ULDD

    Check out our video demo on Automated Submission!

    Step 6: Closing

    Overview

    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 sell your loan.

    How It Works

    1. Proceed with your normal closing procedures.
      • Review the IBMC manual for servicer specific requirements.
      • No interest credits/short payments allowed. 
      • IBMC purchases only newly originated loans (loans cannot have any payments applied).
        • Include IBMC Delivery Fees:
          • Tax Service Fee: $65.00
          • 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)
          • Collect 2 months' escrow unless the state where the property is located requires less. No cushion is required for private mortgage insurance.
      • Prepare the closing documents.
        • The loan will close in your institution’s name.
        • MPF does not require any program specific forms.
      • Provide borrower with the Selling PFI Good-bye / IBMC Welcome Letter (see Exhibit 4 in the IBMC Concurrent Servicing Sale Manual).
      • 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 states differently.
          • MPF prohibits prepayment penalties on the first lien and any subordinate liens for conventional mortgages.
      • Use the FNMA/FHLMC state-specific Mortgage or Deed of Trust.
        • MOM mortgage or Assignment to MERS
        • The day after the loan was locked in eMPF, the individual who locked the loan received an email from IBMC providing the IBMC loan number and MERS MIN number. The MERS MIN number will be needed by the closer/shipper for use on the MOM mortgage or the assignment of mortgage. The IBMC loan number will be used in the delivery of the loan to IBMC.
      • 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)
      • IBMC requires the use of MERS. Refer to the IBMC Concurrent Servicing Sale Manual and/or the post-closing step of this training for more information. 

    Your Responsibilities

    • Meet all federal and state regulations. 
    • Close with the borrower.
    • Pay all taxes, delinquent taxes or insurance payments due within 30 days before or after the sale date.
    • 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%
    • The day after the loan was locked in eMPF, the individual who locked the loan received an email from IBMC providing the IBMC loan number and MERS MIN number. The MERS Min number will be will be needed by the closer/shipper for use on the MOM mortgage or the assignment of mortgage. The IBMC loan number will be used in the delivery of the loan to IBMC.
    • Mandatory Locks Only: If a delivery commitment (lock) results in the delivery of more than one loan, contact IBMC for additional MERS Min numbers and IBMC loan numbers.

    IBMC's Responsibilities

    • Once the loan is boarded onto IBMC's system, the borrower will be provided with IBMC's payment options.{Tooltip} 
    • IBMC will charge the following fees for each serviced mortgage and will net them from your SRP:
      • Tax Service Fee: $65.00
      • Processing Fee: $150.00
      • Escrow Waiver Fee: 0.25% of the unpaid principal balance at the time of sale to MPF

    Step 7: Selling

    Overview

    It's time to sell your loan and reap the rewards of the MPF® Program.

    Now that you've closed with the borrower, you will need to sell the loan to MPF. Loan funding is a two-step process. IBMC requires the loan to be sold to MPF by the earlier of the lock expiration date or no later than 10 calendar days from the disbursement of the loan proceeds.

    1. MPF purchases the Asset via the MPF website.
      • Your loan must be funded by MPF on or before the price expiration date.
      • Your loan funding request must occur:
        • No less than 2 days prior to the lock expiration date for a Mandatory lock.
        • No less than 3 days prior to the lock expiration date for a Best Efforts lock.
      • MPF will only purchase a closed loan. This means the loan must be closed and disbursed before you can request funding/purchase by MPF (i.e., you can close with your borrower in the morning and fund the loan with MPF the same day).
      • The funds will show in your eAdvantage account the day following purchase by MPF. eAdvantage is your banking website with FHLB Des Moines.
      • You can access the loan proceeds on the day MPF purchases your loan by contacting the FHLB Des Moines MFS Wire Department.
      • A benefit of the MPF program is we fund/purchase the loan prior to the delivery of the file to the MPF Document Custodian. Your institution will keep the servicing file and experience no funding delays due to any outstanding investor conditions. If MPF selects a file for Quality Control (QC) review, your MPF QC contact will be instructed on how to upload the required documents for review.
    2. IBMC purchases the Servicing.
      • You will upload the servicing file to IBMC per the instructions in the IBMC manual and Step 8 of this training module. 
      • The Servicing Released Premium (SRP) is paid once a month around the 5th business day for all loans boarded on the IBMC servicing platform in the previous month.
      • Escrow funds are netted from the SRP payment.
      • Each month, IBMC will provide a loan level detail report for SRP payments showing the cost breakdown for each loan boarded. The SRP detail report will be sent to the key contact person as established by the Selling PFI Information Sheet. 
        Find out how SRP is calculated

    Prior to Beginning the Funding Process

    • You must have the delivery commitment (lock) confirmation number.
    • Loan must be closed and disbursed.
    • Verify the loan data submitted in ULDD upload is consistent with the documentation in the loan file, UCDP and Automated Underwriting System (AUS); if not, correct and resubmit the data.

    See how loan funding is calculated.

    The interest calculation is based on the net/pass-thru rate (note rate less 25 bps) using 30/360.{Tooltip}

    See Sample Funding calculation with Interim Interest

    See Sample Funding calculation with Accrued Interest

    Your Responsibilities

    1. Submit the funding request via the eMPF website between 8:30 AM - 3:30 PM CST.
      • Use the automated (batch) submission process to upload the Fannie Mae 3.0 ULDD. This process can be used to fund single or multiple loans.
        Check out our video demo on Automated Submission!
        • Request funds no less than 2 days prior to the lock expiration date for a Mandatory lock
        • Request funds no less than 3 days prior to the lock expiration date for a Best Efforts lock
      • You will receive a “Funding Request Confirmation” via email on the day you request funds.
        This confirmation will not include interim interest and investor fees
        Beginning on September 25, 2017, all loans delivered under the MPF Xtra product will require a successful submission of a UCD XML file prior to making a loan funding request.
    2. Receive funds from the MPF Program.
      • Your loan will be purchased by MPF within 2-3 business days of when you request funds via the eMPF website.
      • On the day MPF purchases the loan, the individual who submitted the funding request will receive an email containing the funding confirmation (Transaction Confirmation and Loan Funding Activity Report). This report will provide you a breakdown of the loan proceeds as well as a MPF loan number which is later used in the loan shipping process.
        • If you fund multiple loans in a single day, some of the funding line items will be lumped together and deposited into your eAdvantage account. The loan funding activity report is important because it provides the funding breakdown for each loan.
      • Funds are available on the same day MPF purchases the loan by contacting the FHLB Des Moines MFS Wire Department; otherwise, you will see the funds appear in your eAdvantage account 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.

    Step 8: Post-Closing

    Overview

    Congratulations, you've sold your loan to MPF®!

    Now that you've closed with the borrower, you need to overnight the custody file to the document custodian and upload the servicing file to IBMC. The MPF document custodian (Wells Fargo) will maintain the safekeeping of the custody (collateral) file documents until conditions warrant their release. Your custody file must be received and certified by the document custodian within 7 calendar days of being purchased by MPF.

    The servicing file must be delivered (preferred method is electronic upload to the IBMC secure website) to IBMC within 7 calendar days of being purchased by MPF. For any questions regarding IBMC delivery, please see the IBMC Concurrent Servicing Sale Manual.

    Your Responsibilities - Delivering the Custody Package

    1. Prepare the custody file folder.
      You must submit a manila, legal-sized folder containing your custody documents for each loan file you mail to the document custodian. 
      • You must attach a label to the top right corner of the folder. 
      • The label must contain the following information:
        • FHLB (MPF Program)
        • PFI Name: Iowa Bankers Mortgage Corporation 
        • Master Commitment Number:
        • Borrower Name:
        • FHLB MPF Loan Number: (from funding confirmation)
        • PFI Loan Number:

          Use our handy label template!

          For New PFIs Only: MPF Provider will provide the first set of file labels. You are responsible for creating labels after those are depleted.

    2. Prepare the documents to be included in the custody file folder.
      Use the MPF Initial Certification Review Checklist (Exhibit K) as a job aid to ensure all documents in the collateral file are executed and delivered to the Custodian in accordance with the requirements of the MPF program. This checklist compares the custody package information to the information submitted to MPF at the time of purchase. The custody file must contain the following information: 
      • Original note (endorsed to _______ [blank])
        • You may choose to attach an allonge to the note in lieu of using the note endorsement. The allonge must meet the requirements of the MPF Guide.
      • Certified copy of MOM Mortgage or an Assignment to MERS (the originals are sent for recording)
        • The day after the loan was locked in eMPF, the individual who locked the loan received an email from IBMC providing the IBMC loan number and MERS MIN number.
        • If you are not a MERS member:
          • Use the MERS assignment form or a standard Assignment of Mortgage form to designate MERS as the assignee with the MIN # provided by IBMC.
          • IBMC will be responsible for the MERS registration.
            You may only use a MOM mortgage if you are a MERS member
        • If you are a MERS member:
          • Use a MOM Mortgage using the PFI’s MIN #.
          • You will be responsible for correct MERS registration.
          • Registration Information for MERS members:
            • Originating Organization: PFI Org ID
            • Custodian: Wells Fargo Org ID 1000573
            • Servicer: IBMC Org ID 1003445
            • Investor: FHLB Chicago 1000491
            • You are responsible for entering the Investor Loan Number 
      • Additional required documents (if applicable):
        • Certified copy of borrower’s power of attorney
        • Certified copy of trust agreement
        • If third party originated: certified copy of all intervening assignments

    The first page of any copies in the custody folder must be marked “True and Certified Copy” and initials or signature below the certification.

    Do not include this checklist with the document package you send to Wells Fargo.

    • If any information within this custody package is inconsistent with the information you submitted to MPF at the time your loan was purchased, you must complete the MPF Schedule Correction Form (OG7). You can submit this form with the custody package if you identify an issue in pre-delivery review. You can also complete this form to correct errors found later by the document custodian.
      Learn more about Custody Fees
    • If you identify a discrepancy impacting the loan amount, first payment date or interest rate, contact the MPF Service Center to have the loan reversed and refunded.
    1. Ship the custody file to the document custodian.
      • The custody file must be certified by the document custodian within 7 calendar days from the date MPF purchases the loan.
      • Overnight the file via UPS or FedEx to the following address:
        Wells Fargo Bank, N.A.
        MPF Program
        751 Kasota Avenue
        Minneapolis, MN 55414-2842

    All exceptions must be cleared within 7 calendar days. Uncertified loan fees will be assessed after 7 calendar days.

    Your Responsibilities - Delivering the Servicing File to IBMC

    1. Upload the Servicing File to IBMC within 7 calendar days of funding (see the Servicing File Checklist - Exhibit 5 IBMC Concurrent Servicing Sale Manual).
      • Keep original physical file for your record retention and quality control requirements.
    2. IBMC receives and reviews the servicing package.
      • The amount of escrow funds shown on the Escrow Funds Reconciliation form will be debited from your account due IBMC on the Serviced Mortgage.
      • Within 5 business days, IBMC will notify you directly if they identify any discrepancies (exceptions) between the data submitted to MPF at funding and the documentation in the servicing package.
    3. Notify third-party service providers of a change in servicer.
      • If the mortgagee clause is not in the name of the Iowa Bankers Mortgage Corporation for the items listed below, prepare and mail a letter requesting endorsement change of the Mortgage Clause and provide a copy to IBMC (see Exhibit 10 of the IBMC Concurrent Servicing Sale Manual). 
        • Private Mortgage Insurance: Notify mortgage insurance company of the loan transfer to IBMC.
        • Homeowner’s or Hazard Insurance/Flood Insurance: Send letter to insurer requesting transfer of endorsement to IBMC.
        • Life of Loan Flood Certification: Send letter to insurer requesting transfer of life of loan coverage to IBMC.
        • Tax Bill Authorization: Notify taxing authority where future tax bills are to be mailed.
    4. Provide the original final/trailing documents to IBMC within 90 days of the sale date.
      • Use the Recorded/Final Documents Checklist (found in Exhibit 5 of the IBMC Concurrent Servicing Sale Manual) and attach it to the final documents submitted for each serviced mortgage. Final documents may include: 
        • Recorded mortgage
        • Recorded assignment or recorded MOM mortgage
        • Title policy
      • If not all documents are available at 90 days, you should deliver the available documents and provide the remaining documents as they become available. 

    Step 9: Custody Reports

    Overview

    Custody reports provide you with the status of the loans submitted to the document custodian for certification. 

    You are required to have your custody package certified by the document custodian (Wells Fargo) within seven (7) calendar days of the loan being purchased by MPF. 

    You will find the MPF exception process very different from other investors you work with. MPF does not delay the purchase of your loan due to exceptions. MPF actually purchases the loan before you deliver the custody package to the document custodian and the servicing file to IBMC.

    Your Responsibilities

    1. Clear all exceptions.
      • If your post-closing contact (as identified on your PFI Post-Closing Information Form) is notified of an exception via email from mpfcustody@fhlbc.com, you must determine which information is correct: the “scheduled information” or the document custody package. Clear all exceptions to receive the initial certification
        • If the scheduled information is incorrect, you must complete either the electronic “MPF Schedule Correction (Form OG7)” or the paper version and submit it to the custodian.
        • If the custody package is incorrect, you must request the document back from the custodian by faxing Wells Fargo the “Request for Release of Documents (Form SG340).”
          • The custody file will be returned using PFI’s overnight courier and billed to you.
          • Correct/replace the document and return the file to Wells Fargo via overnight mail.

            Wells Fargo, NA
            MPF Program
            751 Kasota Avenue
            Minneapolis, MN 55414-2842
      • In addition to correcting the data, some corrections will require the funding to be reversed and refunded:
        • Loan amount
        • First payment date
        • Interest rate
    2. Manage custody fees charged by the Document Custodian.
      • There are two custody reports which will show the fees charged to you from the document custodian for correcting exceptions:
        • Uncertified Loan Fees (initial invoice and a final bill)
          • Shows fees for files delivered and not certified by the 7-day requirement
        • Exception Fees (initial invoice and a final bill)
          • Shows fees for exceptions found by the document custodian 
      • These initial billing reports are posted shortly after month end; the final billing report is posted just prior to the 18th of each month and will reflect the amount that will be charged to your FHLB Des Moines account in eAdvantage. Remember to have sufficient funds in this account to cover these costs, as insufficient funds will result in an overdraft fee.
      • For New PFIs Only: MPF will not charge exception fees within the first 60 days from receipt of the first collateral file or receipt of the first 100 collateral files (whichever comes first).

        Uncertified loan fees will be assessed after 7 calendar days

        Learn more about custody fees

    Step 10: Quality Control

    Overview

    Now it's time to ensure your mortgage production continues to operate at a high level.

    You should conduct quality control reviews to evaluate the investment quality of your home loans, as well as detect possible fraud and false representation. 

    This step outlines the requirements for a Quality Control (QC) program for Mortgage Loans originated and serviced under the MPF® Program. (Refer to MPF Program Guide Chapter 8.) You must perform the QC duties in compliance with the MPF Guide.

    There are 2 types of Sample Selections needed:

    • Pre-Closing
    • Post-Closing

    Your Responsibilities

    1. Randomly select loans for quality control audit that meet the requirements of the MPF Guide.
      • The MPF Guide states the sample size must be no less than 10 percent. Choose either:
        • 10% of your residential 1-4 family mortgage production;
        • 10% of your secondary market 1-4 family mortgage production; or
        • 10% of all your MPF loans
      • A review appraisal will be required on 10% of the loans selected for QC Audit.
        • A desk review must be completed by someone experienced in analyzing residential mortgage appraisals for the remaining loans.
      • Each loan selected for post-closing review must have a new tri-merged credit report. 
      • Two types of reviews are required:
        • Random – full file review (based on the 10% rule)
        • Targeted – review one element of the loan file (these are in addition to the 10% rule)
      • A comprehensive review is required for both stages of the closing process:
        • Pre-Closing
        • Post-Closing
    2. Meet the requirements of the MPF Guide for both pre and post-closing reviews.

    IBMC's Responsibilities

    1. Conduct Servicing audit.
    2. Conduct Early Payment Default audits.
    3. Share any high level concerns.