Selling & Delivery
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 sell the loan to MPF. Selling is a two-step process. 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.
1. MPF purchases the whole loan.
- Your loan must be funded by MPF on or before the price expiration date.
- Your loan funding request must occur:
- No less than 2 days prior to the lock expiration date.
- 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 in the morning and fund the loan with MPF the same day).
- The funds will be deposited in your eAdvantage account the 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.
- A benefit of the MPF program is we fund/purchase the loan prior to the delivery of the file to the MPF Document Custodian. Your institution will keep the servicing file and experience no funding delays due to any outstanding investor conditions. If MPF selects a file for Quality Control (QC) review, your MPF QC contact will be instructed on how to upload the required documents for review.
2. IBMC purchases the Servicing.
- You will upload the servicing file to IBMC per the instructions in the IBMC manual and Step 8 of this training module.
- 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.
- IBMC fees are netted from the SRP payment.
- Each month, IBMC will provide a loan level detail report for SRP payments showing the cost breakdown for each loan boarded. The SRP detail report will be sent to the key contact person as established by the Selling PFI Information Sheet.
Tip: Find out how SRP is calculated
Prior to Beginning the Funding Process
- You must have the delivery commitment (lock) number found on the delivery commitment confirmation.
- Loan must be closed and disbursed.
- Verify the loan data submitted in ULDD upload is consistent with the documentation in the loan file, UCDP 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 a UCD XML file prior to making a loan funding request.
- 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).
Tip: See how loan funding is calculated.
Tip: See Sample Funding calculation with Interim Interest
Tip: See Sample Funding calculation with Accrued Interest
Submit funding request via the eMPF website between 8:30 AM - 3:30 PM CST.
- Use the automated (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 2 days prior to the lock expiration date.
- You will receive a “Funding Request Confirmation” via email on the day you request funds.
Demo: Submitting a Batch for the MPF Xtra Product
Note: This confirmation will not include interim interest and investor fees
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.
Receive funds from the MPF Program.
- Your loan will be purchased by MPF within 1-2 business days of when you request funds via the eMPF website.
- 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). This report will provide you a breakdown of the loan proceeds as well as a MPF loan number which is later used in the loan shipping process.
- If you fund multiple loans in a single day, some of the funding line items will be lumped together and deposited into your eAdvantage account. The loan funding activity report is important because it provides the funding breakdown for each loan.
- Funds are available on the same day MPF purchases the loan by contacting the FHLB Des Moines MFS Wire Department; otherwise, you will see the funds appear in your eAdvantage account the following day.
- You or your accounting staff will need to move loan funds from eAdvantage to your own internal accounts via ACH or wire transfer.