MPF Xtra® Training:Retained

Servicing

Custody Reports

Custody reports provide you with the status of the loans submitted to the document custodian for certification. 

You are required to have your custody package certified by the document custodian (Wells Fargo) within seven (7) calendar days of the loan being purchased by MPF®.

You will find the MPF exception process very different from other investors you work with. MPF does not delay the purchase of your loan due to exceptions. MPF actually purchases the loan before you deliver the custody package to the document custodian.

Your Responsibilities

  1. Monitor custody reports.

    Tip: For more information on reports, see our Custody Reports Tip Sheet

  2. Review for exceptions.

    • Monitor the Certified Loans report. This report shows you a list of loans reviewed and accepted by the Document Custodian. If your loan is showing on this report, there were no exceptions and your custody file has been accepted.
    • If your loan was not on the Certified Loans report, view the Initial Loans Funded - Not Reviewed report. This report means that your loan has either not been received or not been reviewed by the Document Custodian.
    • If your loan is not showing on the Certified Loans report or the Initial Loans Funded - Not Reviewed report, view the Initial Document Exceptions report. This report will notify you of any discrepancies between the loan presentment data/XML data (“scheduled information”) and the information delivered in the custody package. You must determine which information is correct: the “scheduled information” or the document custody package, and clear all exceptions to receive the initial certification. Within the MPF Guides, you may find exhibits H, I, and J helpful in reviewing this report. 
      • If information n the Fannie 3.0 ULDD file is incorrect, email the MPF Custody Department at MPFCustody@fhlbc.com to cure any defects. If a defect involves the loan amount purchased by MPF, the interest rate or the first payment date, contact the MPF Service Center at 877-463-6673 option 1. The loan funding/purchase will be reversed and refunded by MPF with the correct information. 
      • If the custody package is incorrect, you must request the document back from the custodian by emailing the Request for Release of Documents (Form SG340) to MPFReleaseTeam@wellsfargo.com.
        • The custody file will be returned using your overnight courier and billed to you.
        • Correct/replace the document and return the file to Wells Fargo via overnight mail.

          Wells Fargo Bank, NA
          MPF Program
          751 Kasota Avenue
          Minneapolis, MN 55414-2842

    • In addition to correcting the data, some corrections will require the funding to be reversed and refunded:

      • Loan amount
      • First payment date
      • Interest rate
  3. Manage custody fees charged by the Document Custodian.

    • There are two custody reports which will show the fees charged to you from the document custodian for correcting exceptions:
      • Uncertified Loan Fees (initial invoice and a final bill)
        • Shows fees for files delivered/certified after the 7 day requirement
      • Exception Fees (initial invoice and a final bill)
        • Shows fees for exceptions found by the document custodian
    • These initial billing reports are posted shortly after month end; the final billing report is posted just prior to the 18th of each month and will reflect the amount that will be charged to your FHLBDM account in eAdvantage. Remember to have sufficient funds in this account to cover these costs, as insufficient funds will result in an overdraft fee.
    • For New PFIs Only: MPF will not charge exception fees within the first 60 days from receipt of the first collateral file or receipt of the first 100 collateral files (whichever comes first).

    Note: Uncertified loan fees will be assessed after 7 calendar days

    Tip Learn more about custody fees