MPF Xtra® Training:Retained

Training Courses  
Selling & Delivery

Closing

It’s the big day for your borrower!

It’s also an important milestone for your institution, as this is the final step before selling the loan to MPF®. During this stage, we will cover the steps you will need to complete to your loan.

How it Works

  1. Allow sufficient time for pre-funding certification.

    Once the loan is closed and ready to sell, each MPF Xtra custody file will require pre-funding certification by the MPF Document Custodian. The closer needs to be aware of the pre-funding certification time frames; an extension may be needed.
    • Between the closer, the loan funder and the post-closing shipper, ensure there is no less than 7 business days from the custody file ship date to the lock expiration date. The seven days allow for pre-funding certification and purchase by MPF (4 days for the  pre-certification review + 3 days for purchase= 7 days).
    • MPF must purchase MPF Xtra loans no later than 3:30 PM CT on the day of price/lock expiration.
    • An extension may be needed to meet the seven business day time frame. 

  2. Proceed with your normal closing procedures.

    • Meet all regulatory requirements.
    • Prepare the closing documents.
      • The loan will close in your institution’s name.
      • MPF does not require any program specific forms.
      • If tax transcripts were not obtained for the underwriting decision, the borrower(s) must sign a 4506C at closing.
    • Be sure to use only the most current Fannie Mae/Freddie Mac uniform instruments.
    • Use the Multi-state Fixed Rate Note FNMA/FHLMC 3200.
      • Must use 5% late charge after 15 days unless state law says differently.
      • MPF prohibits prepayment penalties on the first lien and any subordinate liens for conventional mortgages.
    • Use the FNMA/FHLMC state-specific Mortgage or Deed of Trust (based on property location). 
      • MERS members may use a MOM mortgage.
    • Use the following FNMA/FHLMC riders if applicable:
      • Multiple units require the use of 1-4 Family Rider (FNMA 3170)
      • PUD Rider (FNMA 3150)
      • Condo Rider (FNMA 3140) 
      • Second Home Rider (FNMA 3890