MPF Xtra® Training:Iowa Bankers Mortgage Corporation

Servicing

Post-Closing

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

Now that you've closed with the borrower and requested funding, you need to overnight the custody file to the Document Custodian and upload the servicing file to IBMC (preferred method is electronic upload to the IBMC secure website). 

For any questions regarding IBMC delivery, please see the IBMC Concurrent Servicing Sale Manual.

Your Responsibilities: Delivering the Custody Package:

  1. Consider timing for pre-funding certification. 

    • MPF Xtra Custody files will require pre-funding certification for all loans purchased by MPF. This means immediately upon requesting funds and receipt of the “Funding Request Confirmation", the custody package must be submitted to the MPF Document Custodian. The loan will not be purchased without initial certification and must be purchased by the expiration date. Loans must be certified not less than three days prior to price expiration or an extension will be required. 
      • Deliver the custody folder to the MPF Document Custodian following the post-closing procedures on the day the MPF loan number is assigned. Timing is critical to the process.
      • MPF loan number will be assigned in the Funding Request Confirmation. The assigned loan number must be used on the label of the MPF custody folder.
  2. Prepare the custody file folder. 

    • For each loan sold to MPF, you must deliver the custody documents to the MPF Document Custodian (Computershare), which maintains the safekeeping of your MPF custody file. 
    • Place the custody documents into a legal size, manila file folder.
    • Attach the label to the top right corner of the folder. 
    • Labels must contain the following information:
      label example
    • Your MPF loan number will be on your Funding Request Confirmation.
    • You are responsible for creating labels.

    Tip: Use our handy label template (Avery sheet labels 8163)! 

  3. Proof the documents to be included in the custody file folder.

    • Use the MPF Initial Certification Review Checklist (Exhibit K-X) 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 file information to the information submitted to MPF at the time of purchase.
    • 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 email MPFCustody@fhlbc.com and they will correct this information.
    • If you identify a discrepancy impacting the loan amount, first payment date or interest rate, contact the MPFServiceCenter@fhlbc.com to have the loan reversed and refunded.

    Note: Do not include this checklist with the document package you send to the Document Custodian.

    Tip: Proof the custody file to avoid excess fees: Learn more about Custody Fees. If using an Assignment, review for accuracy and completeness. Pay special attention to the notary section.

  4. Prepare the documents to be included in the custody file folder.

    The custody file must contain the following documents:
    1. Original note (endorsed from your bank to _______ [blank]). See sample.
      • 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.
    2. 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.
        • 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:
            • Originator = PFI's MERS Org ID #
            • Investor = IBMC Org ID #1003445
            • Servicer = IBMC Org ID #1003445
            • You are responsible for entering the Investor Loan Number
    3. 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.

        Note: You may only use a MOM mortgage if you are a MERS member

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

  5. Deliver the custody file to the Document Custodian. 

    • The custody file should be shipped upon receipt of the Funding Request Confirmation with a full 7 business days prior to lock expiration. 
    • The custody file must be certified no less than 3 days prior to the price expiration date. If you do not have the required 3 days, an extension will be needed (4 business days for pre-certification + 3 business days for MPF to purchase = 7 business days). 
    • Overnight the file via UPS or FedEx to the following address:

                                     Computershare- MPF Program
                                     751 Kasota Avenue
                                     Minneapolis, MN 55414-2842

      Tip: To avoid an excess overnight mailing fee, proof the document package using the MPF Initial Certification Review Checklist (Exhibit K-X) prior to delivering the custody package to the Document Custodian.

Your Responsibilities: Delivering the Servicing File to IBMC:

  1. Hold the escrow funds in an internal account; you provided the account information to IBMC on the Selling PFI Information Sheet.

    • On the date the loan is boarded on the IBMC servicing system, IBMC will ACH the escrow amounts shown on the closing disclosure from the designated account. 
  2. Notify third-party service providers of a change in servicer and provide evidence in the servicing file, along with the miscellaneous escrow items.  

    • 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 an 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.
  3. Follow the IBMC Concurrent Servicing Sale Manual delivery instructions for delivery of the loan file to IBMC. 

    • Put the file in the order of the Servicing File Checklist (exhibit 5 of the IBMC Concurrent Servicing Sale Manual), and attach it to the final documents submitted for each serviced mortgage.
    • Scan file as one pdf and upload the servicing file to the IBMC website within 7 calendar days of purchase by MPF.
    • Keep original physical file for your record retention and quality control requirements.

  4. Upon receipt of the PDF servicing file, IBMC has 5 business days to perform their file review. 

    • IBMC will confirm to make sure all required documentation is received; they do not review the underwriting.
      • IBMC will notify you directly if they identify any discrepancies (defects/missing items) and will work with you to resolve any issues.
      • See IBMC Concurrent Servicing Sale Manual for instructions to curing any servicing file defects (chapter 8).
  5. Provide the original final/trailing documents to IBMC within 90 days of the sale date.

    • Use the Recorded/Final Documents Checklist (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: 
      • Original Security Document (i.e. recorded Mortgage, recorded MOM or recorded Deed of Trust) 
      • Recorded Assignment (if MOM Mortgage was used, there will be no Assignment of Mortgage)
      • Title policy (for Iowa properties: in lieu of a Title policy, you may have a Final Title Opinion or Iowa Title Guaranty as permitted by the Guides)
    • If not all documents are available at 90 days, you should deliver the available documents and provide the remaining documents upon receipt.