Sample Funding with Accrued Interest

Loan Details

• $100,000
• Loan closes on 2/5 loan with the first payment due on 3/1
• As the PFI, you submit the funding request. The loan funds on 2/11 (prior to expiration)
• Note rate 5.5%
• Agent fee 1.38050% (premium price)
• MPF owes PFI 10 days
• $100,000 x .0525 (5.50 less 25 bps servicing fee) = $5,250.00
• $5,250.00 ÷ 360 = $14.5833333
• $14.5833333 x 10 = $145.8333333 or $145.83

Accrued interest can result based on a first payment date with less than 30 days to the first payment or a loan closed with interim interest but is sold to MPF with less than 30 days till the first payment date (i.e., loan closes 6/28 and sold to MPF in July).

Crunching the Numbers   

$100,000.00  Loan Amount
+       145.83  Accrued Interest
+    1,380.50  Agent Fee
-                      Any LLPAs
+/-                  SRP less Newrez Fees
-                      Escrows               

Your DDA will show each line item; the net funded amount will be reflected on your funding confirmation.