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 close your loan.

How it Works

  1. Allow sufficient time for pre-funding certification.

    Once the loan is closed and ready to sell, each MPF Xtra custody file will require pre-funding certification by the MPF Document Custodian. The closer needs to be aware of the pre-funding certification time frames; an extension may be needed.
    • Between the closer, the loan funder and the post-closing shipper, ensure there is no less than 7 business days from the custody file ship date to the lock expiration date. The seven days allow for pre-funding certification and purchase by MPF (4 days for the  pre-certification review + 3 days for purchase= 7 days).
    • MPF must purchase MPF Xtra loans no later than 3:30 PM CT on the day of price/lock expiration.
    • An extension may be needed to meet the seven business day time frame. 
  2. Proceed with your normal closing procedures.

    • Meet all regulatory requirements.
    • Review the IBMC manual for servicer specific requirements.
    • No interest credits to the borrower or short payments allowed.
    • IBMC purchases only newly originated loans (loans cannot have payments applied).
      • Include IBMC 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)
          • 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%.
        • Collect 2 months' escrow unless the state where the property is located requires less.
        • No cushion is required for private mortgage insurance.
        • Escrow funds will be deposited to your internal account that was provided to IBMC in the “Selling PFI Information Sheet” at the time you applied to participate in the MPF program.
        • Pay any taxes or insuracce premiums that are due within 30 days before or after the sale date. 
        • Mandatory delivery 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.
        • Provide borrower with the Selling PFI Good-bye/IBMC Welcome Letter (see Exhibit 4 in the IBMC Concurrent Servicing Sale Manual).
        • Provide borrower with the Notice of Servicing Transfer or equivalent document at closing, or as required by RESPA and other applicable laws.

    • Prepare the closing documents.
      • The loan will close in your institution’s name.
      • MPF does not require any program specific forms.
      • If tax transcripts were not obtained for the underwriting decision, the borrower(s) must sign a 4506C at closing.
      • Be sure to use only the most current Fannie Mae/Freddie Mac uniform instruments.
      • Use the Multi-state Fixed Rate Note FNMA/FHLMC 3200.
        • Must use 5% late charge after 15 days unless state law states differently.
        • MPF prohibits prepayment penalties on the first lien and any subordinate liens.
      • Use the FNMA/FHLMC state-specific Mortgage or Deed of Trust (based on property location).
        • MERS members may use a MOM Mortgage (see MERS information below).
      • 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)

    • MERS Members-  IBMC will issue a registration confirmation, which will include an IBMC loan number and MERS MIN number. If you are a member of MERS and have the ability to generate a MIN number and register a loan on the MERS system, the MERS MIN number given by IBMC can be disregarded. 
    • Non MERS Members- Issue an assignment to MERS using the information in the IBMC confirmation; the assignment will be sent for recording. 
    • Refer to the IBMC Concurrent Servicing Sale Manual and/or the post-closing step of this training for more information. 

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, 5th or 12th 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