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).
MPF purchases the loan via the eMPF website.
- MPF will only purchase a closed loan. This means the loan must be closed and disbursed before you can request funding/purchase by MPF (i.e., you can close with your borrower and request funding by MPF the same day).
- Your loan funding request must occur no less than 7 days prior to the lock expiration date.
- The custody file will be reviewed and must receive initial pre-certification not less than three business days prior to price expiration. The loan will not be purchased without initial certification.
- Your loan must be funded by MPF on or before the price expiration date.
Prior to Beginning the Funding Process
- MPF Xtra will require pre-funding certification for all loans purchased by 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 delivery commitment number (found on your DC Confirmation) is to be entered in your Loan Origination System (LOS).
- You may need to purchase an extension to have the required 7 days needed.
- Verify the loan data submitted in the ULDD upload is consistent with the documentation in the loan file, UCPD and Automated Underwriting System (AUC); if not, correct and resubmit the data.
- 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.
Funding Request Process
- Using the eMPF website to request funding, select the "Transaction" tab and then Batch. When completing the batch screen, choose the batch type "LPR and Funding Request".
- The Funding Request Confirmation will be issued on the day the “LPR and Funding Request” batch is successfully submitted via the eMPF website.
- The MPF Loan Number will be assigned and can be located in the lower left after of the Funding Request Confirmation. The assigned loan number must be used on the label of the MPF custody folder.
- Ship the custody file to the 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.
- Funding Confirmation: Two days following the pre-funding certification, the loan will fund and the funding confirmation will be emailed to the user who submitted the batch request. Funds will be deposited to your general eAdvantage demand account at FHLB Des Moines
Tip: See how loan funding is calculated.
Submit funding request via the eMPF website between 8:30 AM - 3:30 PM CST.
- Use the automated (batch) submission process to upload the Fannie Mae 3.0 ULDD. This process can be used to fund single or multiple loans.
- Request funds no less than 7 business days prior to the lock expiration date.
- You will receive a “Funding Request Confirmation” via email on the day you request funds.
Demo: Submitting a Batch for the MPF Xtra Product
Note: This confirmation will not include interim interest and investor fees.
Note: Escrow funds (if applicable) will be deposited to the PFI account as provided to SLS in the Selling PFI Information sheet. Once SLS boards the loan on their servicing platform, SLS will ACH the escrow funds from this account.
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.
- MPF will do a full net funding including: the loan amount purchased by MPF, service release premium, interim interest, agent fee, LLPAs, tax service fee, Specialized Loan Servicing's boarding fee and escrow deposits.
- 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
- SLS will purchase the servicing separate from MPF's purchase of the loan (see Post-Closing tab for SLS's delivery process).
Tip: Find out how SRP is calculated.