Selling & Delivery
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
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.
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