MPF Xtra® Training:Retained



Congratulations, you've sold your loan to the MPF® Program!

Now that you have the Funding Request Confirmation, you are ready to send the custody file to the MPF Document Custodian.

Your Responsibilities: Delivering the Custody Package:

  1. Consider the timing for pre-funding certification. 

    • MPF Xtra Custody files require pre-funding certification for all loans purchased by Fannie via MPF.
    • The custody file must be reviewed and certified by the MPF Document Custodian before the loan will be purchased i.e. Pre-funding Certification.
    • You must allow not less than 7 business days for the certification and purchase of the loan (4 days for the MPF Custodian to complete the review and certify the loan with an additional 3 days for purchase by MPF).
    • The loan must be purchased by MPF no later than 3:30 CT on the expiration date.
    • Loans must be certified not less than three days prior to price expiration or an extension will be required. 
    • The MPF loan number will be assigned on the Funding Request Confirmation. 
    • The assigned MPF loan number must be used on the label of the MPF custody folder.
  2. Prepare the custody file folder. 

    • For each loan sold to MPF, you must deliver the custody documents to the MPF Document Custodian for pre-funding certification. 
    • Place the custody documents into a legal size, manila file folder.
    • Attach a label to the top right corner of the folder.  
    • The labels must contain the following information:
      label example
    • The MPF loan number will be assigned on the Funding Request Confirmation.
    • You are responsible for creating the labels.

    Tip: Use our handy label template (Avery sheet labels 8163)! 

  3. Proof the documents to be included in the custody file folder.

    • Use the MPF Initial Certification Review Checklist (Exhibit K-X) as a job aid to ensure all documents in the collateral file are accurate and executed in accordance with the requirements of the MPF program. The checklist compares the custody file information to the information submitted to MPF at the time of the funding request. 
    • If any information within this custody package is inconsistent with the information you submitted to MPF, email the MPF Custody Department asking them to make the needed corrections. 
    • If the custody documents themselves are incorrect, you will need to correct them. 
    • If you identify a discrepancy regarding the loan amount, first payment date or interest rate, contact the MPF Service Center to have the loan reversed and refunded.

    Note: Do not include this checklist with the document package you send to the Document Custodian.

    Tip: Proof the custody file to avoid excess fees: Learn more about Custody Fees. If using an Assignment, review for accuracy and completeness. Pay special attention to the notary section.

  4. Prepare the documents to be included in the custody file folder.

    The custody file must contain the following documents:
    1. Original note (endorsed from your bank to _______ [blank]). (Allonge is acceptable.) See sample.
      • You may choose to attach (staple) an allonge to the note in lieu of using the note endorsement. The allonge must meet the requirements of the MPF Guide, as in the sample. 
    2. Original unrecorded assignment or certified copy of the first two pages of the MOM mortgage
      • If the loan is closed with a Mortgage or Deed of Trust, an original assignment of mortgage or deed of trust (based on where the property is located) will be required. The assignment will be completed without the name of the transferee (this will be left blank). The assignment is not recorded; therefore, there is no recording information. The original document will be included in the custody folder. 
      • If the loan is closed using a MOM mortgage (Mortgage Originated in MERS), an assignment is not required and the mortgage loan must immediately be registered with MERS. Use your institution's MERS Org ID as the Originator, Servicer, and Investor.  
    3. If applicable:
      • Certified copy of borrower’s power of attorney
      • Certified copy of trust agreement
      • If third party originated: certified copy of all intervening assignments

      Note: The first page of any copies in the custody folder must be stamped “True and Certified Copy” and initials or signature below the certification.

  5. Deliver the custody file to the document custodian. 

    • The custody file should be shipped after receipt of the Funding Request Confirmation. Be sure to have not less than 7 business days prior to lock expiration (4 business days for pre-certification + 3 days for MPF to purchase = 7 business days). 
    • The custody file must be certified in no less than 3 days prior to the price expiration date. 
    • Monitor the Pre-Certification Custody Report (see the Custody Process tab). If the MPF Document Custodian sited any exceptions, you may need a price extension to allow you sufficient time to make the corrections, have the loan pre-certified and still have the required 3 days for purchase by MPF. 
    • Overnight the file via UPS or FedEx to the following address:

                               MPF Program
                               751 Kasota Avenue
                               Minneapolis, MN 55414-2842

Tip: To avoid an excess overnight mailing fee, proof the document package using the MPF Initial Certification Review Checklist (Exhibit K-X) prior to delivering the custody package to the Document Custodian.

Retain the original final/trailing documents.

  • As a servicing PFI, the recorded mortgage and final title policy will be retained in the loan file.