Mandatory Lock Terms
- You will not lock a specific borrower or property address. You will lock a dollar amount, loan term, and interest rate for a lock period from 10-90 calendar days.
- A Delivery Commitment can be for one loan or multiple loans. If delivering multiple loans into one DC (lock), use the same DC number for all loans.
- Loans are priced in 10-, 15-, 20- and 30-year fixed-rate terms.
- Ten year pricing is only available by contacting the MPF Service Center at #877.463.6673 (option 1 or 2 to obtain a 10-year price quote).
- Odd amortization terms are allowed:
- 120 month term priced into a 10-year term (IBMC minimum loan term 120)
- 121-180 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
Loan Amount Tolerances
- When the loan amount you deliver falls within the allowable tolerance, you are considered meeting your mandatory delivery. The MPF Xtra tolerance is plus or minus by the greater of $10,000 or 2.5% of the original delivery commitment amount, not to exceed the maximum loan amount limits for both conforming and high balance loans.
- When a loan is delivered outside the allowable tolerances, any applicable fees will be calculated on the full amount the loan is under or over the original delivery commitment. These fees could result in a debit or credit to your institution's eAdvantage DDA account based on bond market movement.
- Example: A loan locked at $300,000 is delivered at $285,000. Based on the tolerance rule, if the loan was funded between $290,000 and $310,000, there would not be a fee. In this example, the pair-off fee will be calculated on $15,000, the full amount not delivered.
- When using sub-product pricing, you may not have the ability to use the $10,000 or 2.5% tolerance. Example: locked in at a sub-product price of $150,000 maximum, you could not use the tolerance rule to increase the loan amount. To increase above $150,000, you would have to pair-off and relock.
Tip: See Pair-Off Examples
Xtra Mandatory Interest Rate Tolerances
- The interest rate can be changed and can vary by as much as .50 bps. The variance will be based on the Mortgage Backed Security requirements for each note rate. To simplify this, the allowable interest rate range for each DC (lock) will be shown on the DC Confirmation.
- The interest rate tolerance allowance is useful when you need to substitute a different loan or loans into an existing mandatory delivery commitment.
Tip: Example of Interest Rate Tolerances
Over-Delivery / Price Adjustment Fee
- A DC cannot be increased.
- Multiple DCs cannot be added together for one loan.
- You can over deliver an MPF Xtra DC.
- The maximum over-delivery amount is 25% of the original DC amount, up to (but not to exceed) the maximum allowable conforming loan limits, or if used the high balance maximum loan limits.
- On a DC of $150,000, the maximum over-delivery is an additional $37,500, which is 25% of the $150,000 for a total of $187,500. When the amount delivered exceeds the allowable tolerance (which is the greater of $10,000 or 2.5%), the pair-off fee will be charged on the full amount the delivery is above the original DC 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.
- Ensure you have sufficient funds in your general DDA to cover this fee.
Tip: See Over-Delivery / Price Adjustment Fee Examples