MPF funding (the date the loan is sold to MPF) is not to exceed 10 calendar days from funds being disbursed to the borrower.
The loan must fund on or prior to the lock expiration date.
- A MPF Xtra mandatory lock must request funds no less than two days prior to price expiration date.
- A MPF Xtra best efforts lock must request funds no less than three days prior to price expiration date.
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 in the morning and fund the loan with MPF the same day).
The borrower’s payment is due the first day of the month following the first full month of interest.
The MPF funding/purchase of the loan starts the clock for delivery.
The custody file must be delivered to and certified by the MPF Document Custodian within 7 calendar days of the loan being purchased by MPF.
When a file is “Certified,” it means the Document Custodian has received the file, reviewed the documents and there are no exceptions. It is recommended that you ship as soon as the loan is funded; if exceptions are found, you may have time for corrections to be made and still meet the 7 day requirement.
As the servicer, you will retain the servicing file at your institution; you will not deliver the servicing file to MPF.