Selling & Delivery
It's time to sell your loan and reap the rewards of the MPF® Program.
Now that you've closed with the borrower, you will need to initiate the funding request using the eMPF website. SLS requires the loan be sold to MPF no later than 30 days after the loan has closed, and with the first payment due to Specialized Loan Servicing. There can be no interest credits to the borrower and no first payment short (less than 30 days in the first payment).
1. MPF Purchases the Asset and the Servicing.
- MPF will only purchase a closed loan. This means the loan must be closed and disbursed before you can request funding/purchase by Fannie/MPF (i.e., you can close with your borrower and request funding by MPF on the same day).
- Your loan funding request must occur not less than 7 business days prior to the lock expiration date.
- The custody file will be reviewed by the MPF Document Custodian and must receive pre-funding certification with in the first four days; the next three days allow for Fannie Mae data verification and purchase.
- The loan will not be purchased without pre-funding certification (4 business days for pre-funding + 3 business days for MPF to purchase = 7 business days).
- Your loan must be purchased by MPF on or before 3:30 PM on the price expiration date.
- With MPF purchasing both the mortgage loan asset and servicing, you will receive a full net funding (loan Amount plus the agent fee, less the escrow amounts, interest, LLPAs and servicers fees (tax service fee and loan boarding fee)).
2. MPF Will Sell the Servicing to SLS
- In a separate transaction, MPF will sell the servicing to SLS.
Prior to Beginning the Funding Process
- You may need to purchase an extension to have the required 7 business days prior to expiration as required (4 business days for pre-funding certification + 3 business days for MPF to purchase = 7 business days).
- Prior to the actual funding request, the batch file should have been submitted to confirm the batch file is complete and can therefore be successfully uploaded when requesting funding by MPF.
- Verify the loan data submitted in the 3.0 ULDD upload is consistent with the documentation in the loan file, UCPD and Desktop Underwriter (DU); if not, correct and resubmit.
- All loans delivered under the MPF Xtra product will require a successful submission of the UCD XML file prior to making a loan funding request.
- The delivery commitment number (found on your DC Confirmation) should have been entered in your Loan Origination System (LOS), so that it is included in the batch upload.
Funding Request Process
- The eMPF website will not permit any funding requests to be made with DC expiration dates that are less than 7 business days to the expiration date.
- Export the Fannie Mae 3.0 ULDD file from your LOS system; this file must be in an XML format for upload to eMPF.
- Using the eMPF website to request funding, select the "Transactions" tab and then “Batch”. When completing the batch screen, choose the batch type "LPR and Funding Request", and browse to select the ULDD 3.0 ULDD for upload.
- This process can be used to fund single or multiple loans.
- Upon successfully submitting the “LPR and Funding Request”, the system will automatically move you to the batch report screen.
- Open the batch; in the lower section you will see the PFI loan number, borrowers name, and the status will say "Funding Requested". The MPF loan number will be found on the "Excel Batch Detail Report- LPR and Fund" and must be used on the label of the custody file folder.
- The Successful Batch report provides more detail (basically reflects the data uploaded in the batch). Not all funding information (LLPA, interim interest, SRP and investor fees) will show as the loan has not been purchased.
- Your custody file can now be shipped to the MPF Document Custodian. See "Post-Closing" tab for instruction.
- MPF reports must be monitored to ensure there are no issues that may delay the pre-funding certification and require an extension. See "Custody Reports" tab for instruction.
- The Document Custodian will notify MPF when the custody file is pre-certified. MPF will initiate the actual funding request with Fannie Mae.
- Fannie Mae will validate the ULDD information to the DU file, which must match. You will be contacted if any inconsistencies are found.
View Demo Video
Tip: See how loan funding is calculated.
Submit funding request via the eMPF website between 8:30 AM - 3:30 PM CT.
- Request funds not less than 7 business days prior to the lock expiration date.
- Request an extension if necessary.
- Once the Batch is successfully submitted, review the Batch Detail Report- LPR and Fund to ensure the batch was successful and obtain the MPF loan number.
- The post-closing process can begin. See post-closing instructions training tab.
- Between the funding person and the post-closer, the Custody Reports must be monitored. See "Custody Reports" tab for instruction.
Receive funds from the MPF Program.
- On the day MPF purchases the loan, the individual who submitted the funding request will receive an email containing the funding confirmation (Transaction Confirmation and Loan Funding Activity Report).
- The interest calculation is based on the net/pass-thru rate (note rate less 25 bps) using 30/360.
- 30/360 is a standard calculation for secondary market loans. This means that each loan payment reflects 30 days of interest regardless of the day the payment is made and regardless of the number of days in a month (i.e. it doesn't matter if it is February or July, it will always be calculated with 30 days of interest).
- If you fund multiple loans in a single day, some of the fundings may be lumped together.
- The loan funding activity report is important because it provides the funding breakdown for each loan.
- Share this confirmation with your accounting department; they monitor the FHLB account activity.
- The funds will show in your eAdvantage account the business day following purchase by MPF. eAdvantage is your banking website with FHLB Des Moines.
- You can access the loan proceeds on the day MPF purchases your loan by contacting the FHLB Des Moines MFS Wire Department.
- You or your accounting staff will need to move loan funds from eAdvantage to your own internal accounts via ACH or wire transfer.
Tip: See Sample Funding calculation with Interim Interest
Tip: See Sample Funding calculation with Accrued Interest