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.

  • MPF will only purchase a closed loan. This means the loan must be closed and disbursed before you can request funding/purchase by FANNIE/MPF (i.e., you can close with your borrower and request funding on the same day).
  • Your loan funding request must occur not less than 7 business days prior to the lock expiration date.
  • The custody file will be reviewed by the MPF Document Custodian and must receive pre-funding certification with in the first four days; the next three days allow for Fannie Mae data verification and purchase.
  • Your loan will not be purchased without pre-funding certification (4 business days for pre-funding certification + 3 business days for MPF to purchase = 7 business days). 
  • Your loan must be funded by MPF on or before 3:30 PM on the price expiration date.  

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 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

  • You may need to purchase an extension to have the required 7 business days prior to expiration as required (4 business days for pre-funding certification + 3 business days for MPF to purchase = 7 business days).  
  • 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 uploaded when requesting funding by MPF.
  • Verify the loan data submitted in the 3.0 ULDD upload is consistent with the documentation in the loan file, UCPD and Desktop Underwriter (DU); if not, correct and resubmit the batch/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. 
  • The delivery commitment number (found on your DC Confirmation) should have been entered in your Loan Origination System (LOS), so that it is included in the batch upload.

Funding Request Process

  • The eMPF website will not permit any funding requests to be made with DC expiration dates that are less than 7 business days to the expiration date.
  • Export the Fannie Mae 3.0 ULDD file from your LOS system; this file must be in an XML format for upload to eMPF. 
  • Using the eMPF website to request funding, select the "Transaction" tab and then “Batch”. When completing the batch screen, choose the batch type "LPR and Funding Request".
  • This process can be used to fund single or multiple loans.
  • Upon successfully submitting the “LPR and Funding Request”, the system will automatically move you to the batch report screen.
    • Open the batch; in the lower section you will see the PFI loan number, borrowers name, and the status will say "Funding Requested". The MPF loan number will be found on the "Excel Batch Detail Report- LPR and Fund" and must be used on the label of the custody file folder.
    • The Successful Batch report provides more detail (basically reflects the data uploaded in the batch). Not all funding information (LLPA, interim interest) will show as the loan has not been purchased.
    • The custody file can now be shipped to the MPF Document Custodian. 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 to their Fannie DU file, which need to match. You will be contacted if any inconsistencies are found.
  • The SRPs will be paid once a month by IBMC. IBMC will ACH the funds to your account (the account number provided on the Selling PFI Information Sheet at the time of your application to MPF).

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.

    • Request funds not less than 7 business days prior to the lock expiration date.
    • Request an extension if necessary.
    • Once the Batch is successfully submitted, review the Batch Detail Report- LPR and Fund to ensure the batch was successful and obtain the MPF loan number.
    • The post-closing process can begin. See post-closing instructions training tab.
    • Between the funding person and the post-closer, the Custody Reports must be monitored. See "Custody Reports" tab for instruction. 
       

      View Demo Video

    Note: The Funding Request Confirmation will not include SRPs, LLPAs, or interim interest.

    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