MPF Xtra® Training:Specialized Loan Servicing

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 sell your loan.

How it Works

  1. 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: $85.00
      • Tax Service Fee: $85.00
    • Prepare the closing documents.
      • The loan will close in your institution’s name.
      • MPF does not require any program specific forms.
    • 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.

Your Responsibilities

  1. Meet all federal and state regulations.

  2. Close with the borrower.

  3. 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

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