MPF Xtra® Training:Iowa Bankers Mortgage Corporation

Selling & Delivery

Selling

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 initiate the funding request using the eMPF website. 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. The first payment is due to IBMC; there can be no interest credits or first payment short (less than 30 days to the first payment date). The loan purchase is a two step process:

1. MPF purchases the Asset.

  • Allow 7 business days from the funding request for the loan funding to occur. 
  • You will receive an email confirmation on the day the loan is purchased. Funding is an overnight transaction; the funds will show in your eAdvantage account on the following day. eAdvantage is your banking website with FHLB Des Moines. 
  • You can access the loan proceeds on the day of funding by contacting the FHLB Des Moines MFS Wire Department

2. IBMC purchases the Servicing. 

  • 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.
  • Each month, IBMC will provide a loan level detail report for SRP payments showing the cost breakdown for each loan boarded.
  • IBMC will purchase the servicing separate from MPF's purchase of the loan (see Post-Closing tab for IBMC delivery process). 

Tip: Find out how SRP is calculated.

Prior to Beginning the Funding Process

  • 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 and request funding by MPF the same day).
  • Your loan funding request must occur no less than 7 business days prior to the lock expiration date.
  • The custody file will be reviewed and must receive initial pre-certification not less than three business days prior to price expiration. The loan will not be purchased without initial certification. (4 business days for pre-certification + 3 business days for MPF to purchase = 7 business days)
  • Your loan must be funded by MPF on or before the price expiration date.
  • Prior to the actual funding request, the batch file should have been submitted to confirm the batch file is complete and can therefore be successfully submitted when requesting funding/purchase by MPF.
  • The delivery commitment number (found on your DC Confirmation) should have been entered in your Loan Origination System (LOS), so that it is in the ULDD/Batch file uploaded to eMPF.
  • Prior to request for MPF to fund the loan, you may need to purchase an extension to have the required 7 business days needed for requesting funds/purchase. 
  • Verify the loan data to be submitted in the ULDD upload is consistent with the documentation in the loan file, UCPD and Automated Underwriting System (AUS); if not, correct and resubmit the data. 
  • All loans delivered under the MPF Xtra product will require a successful submission of the UCD XML file prior to making a loan funding request. 

Funding Request Process

  • The eMPF website is used to request funding; select the "Transaction" tab and then Batch. When completing the batch screen, choose the batch type "LPR and Funding Request".
  • The Funding Request Confirmation will be issued on the day the “LPR and Funding Request” batch is successfully submitted via the eMPF website.
  • The MPF Loan Number will be assigned and can be located in the lower left of the Funding Request Confirmation. The assigned loan number will be needed on the label of the MPF custody folder.
  • Immediately ship the custody file to the Document Custodian keeping your 7 business day timing in mind. See "Post-Closing" tab for instruction.
  • MPF Reports must be monitored to ensure there are no issues that may delay the pre-funding certification and require an extension. See "Custody Reports" tab for instruction. 
  • The Document Custodian will notify MPF when the custody file is certified. MPF will initiate the actual funding request with Fannie Mae.
  • Fannie Mae will validate that the funding request ULDD file and the Fannie DU file match. You will be contacted if any inconsistencies are found.
  • Your loan must be funded by MPF on or before the price expiration date; a Delivery Commitment extension may be required. 

Tip: See how loan funding is calculated.

Your Responsibilities

  1. Submit funding request via the eMPF website between 8:30 AM - 3:30 PM CT.

    • Export the Fannie Mae 3.0 ULDD file from your LOS system.
    • From the Transaction tab in eMPF, use the batch submission process to upload the Fannie Mae 3.0 ULDD. This process can be used to fund single or multiple loans.
    • Request funds no less than 7 business days prior to the lock expiration date.
    • You will receive a “Funding Request Confirmation” via email on the day you request funds. The MPF loan number is assigned at this time and will be needed for the Custody folder label. 
       

    Demo: Submitting a Batch for the MPF Xtra Product

    Demo: Submitting a Batch for the MPF Xtra Productplay video

    Note: This Funding Request Confirmation will not include interim interest and investor fees (LLPAs).

    Note: Escrow funds (if applicable) will be deposited to the PFI account as provided to IBMC in the Selling PFI Information sheet. Once IBMC boards the loan on their servicing platform, IBMC will ACH the escrow funds from this account. 

  2. Receive funds from the MPF Program.

    • 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). 
    • The interest calculation is based on the net/pass-thru rate (note rate less 25 bps) using 30/360.
    • 30/360 is a standard calculation for secondary market loans. This means that each loan payment reflects 30 days of interest regardless of the day the payment is made and regardless of the number of days in a month (i.e. it doesn't matter if it is February or July, it will always be calculated with 30 days of interest). 
    • If you fund multiple loans in a single day, some of the fundings may be lumped together. 
    • The loan funding activity report is important because it provides the funding breakdown for each loan.
    • Share this confirmation with your accounting department; they monitor the FHLB account activity. 
    • The funds will show in your eAdvantage account the business 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.
    • You or your accounting staff will need to move loan funds from eAdvantage to your own internal accounts via ACH or wire transfer.

      Tip: See Sample Funding calculation with Interim Interest

      Tip: See Sample Funding calculation with Accrued Interest