MPF Xtra® 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 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: $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)
        • 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

  1. Meet all federal and state regulations.

  2. Close with the borrower.

  3. Pay all taxes.

    Delinquent taxes or insurance payments due within 30 days before or after the sale date.
  4. 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%

  5. 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.

  6. 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

  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 them from your SRP:

    • 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