Closing

Allow sufficient time for pre-funding certification requirements.

• MPF Xtra Custody files will require pre-funding certification for all loans funded to MPF. This means immediately upon requesting funds and receipt of the “Funding Request Confirmation”, the custody package must be submitted to the MPF Document Custodian. The file will be reviewed and must receive initial certification not less than three business days prior to the price expiration date. The loan will not be purchased by MPF without initial certification.  
  • When closing an MPF Xtra loan, the closing needs to be timed so that the MPF funding is requested no less than seven business days prior to price expiration date.
  • If you are unable to close the loan and allow the seven business days for the funding request, it will be necessary to obtain an extension using the Transaction Tab in eMPF. 

Proceed with your normal closing procedures.

• Review the Specialized Loan Servicing Whole Loan Servicing Transfer Manual for servicer specific requirements.
• Include SLS Delivery Fees: 
  • Tax Service Fee: $80.00
  • Loan Boarding Fee: $150.00
• 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 standard Fannie Mae/Freddie Mac uniform instruments.
  • Use the Multi-state Fixed Rate Note FNMA/FHLMC 3200.
    • Must use 5% late charge after 15 days (OG-12) unless state law states 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.
  • MOM mortgage or Assignment to MERS
• 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)
• Specialized Loan Servicing requires you to be a MERS member. Refer to the SLS Whole Loan Servicing Transfer Manual for more information.

Meet all federal and state regulations.

Close with the borrower.

Provide the borrower with the Notice of Servicing Transfer (Exhibit 2 of the Specialized Loan Servicing (SLS) Whole Loan Servicing Transfer Manual) or equivalent document at closing or as required by RESPA and other applicable laws. This document must include an accurate effective servicing transfer date.

Effective Date of Servicing Transfer is equal to the date the first payment is due to SLS.

For Loans Purchased On or Before the 12th
Serviced loans purchased on or before the 12th calendar day of the month will have a first payment due to SLS on the 1st day of the next month. For example: 

Funding Date: August 9
1st Borrower Payment Date Due to SLS: September 1
Effective Servicing Transfer Date: September 1 

For Loans Purchased After the 12th
Serviced loans purchased after the 12th calendar day of the month will have a first payment due to SLS on the 1st day of the month after the next month. For example:

Funding Date: August 22
1st Borrower Payment Date Due to SLS: October 1
Effective Servicing Transfer Date: October 1

Pay all taxes, delinquent taxes or insurance payments due within 60 days before or after the sale date.