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How do I calculate a pair-off fee?
Compare the premium or discount (agent fee) percentage at the time the Delivery Commitment (DC) was locked to what the agent fee percentage would be for a similar transaction the day the DC is being paired off. The agent fee used to compare to the original fee is adjusted for the time remaining on the delivery commitment. So, if the original delivery commitment was a 30-day and there are 10 days remaining, the original 30-day price would be compared to the current 10-day price.
For MPF Traditional Product DCs with dollar amounts delivered below the DC’s tolerance: If the agent fee percentage on the day of the pair-off is less, there will be no pair-off fee assessed. Otherwise, take the absolute value of the change in price (from original lock day to current day price) times the amount non-delivered. The pair-off calculation references schedules in effect at 3:30 p.m. on the date the commitment expires.
For MPF Traditional Product DCs with dollar amounts delivered above the DC’s tolerance: If the agent fee percentage on the day of the pair-off is greater, there will be no pair-off fee assessed. Otherwise, take the absolute value of the change in price (from original lock day to current day price) times the amount non-delivered.
Actual pair-off fee calculations can be provided by the MPF Servicer Center (877.345.2673) or through the eMPF website.
How do I get access to the eMPF® website?
The eMPF website is located here. To gain access, you’ll need to complete a Delegation of Authority form. Please contact the MPF department at 866.571.8171 to obtain the form.
What are the delivery commitment tolerances in the MPF Program?
MPF Delivery Commitments have a built-in tolerance. For each delivery commitment, the acceptable note range for mortgages delivered under that commitment is +/- 25 basis points (.25%) from the specified note rate, or the limit of the price range, whichever is more restrictive.
For delivery commitments of $2 million or less there is a 5% (.05) tolerance above or below the commitment amount.
For delivery commitments greater than $2 million, the tolerance is 1% (.01) above or below the commitment amount.
HOW AM I PAID FOR LOANS SOLD TO COLONIAL SAVINGS?
Colonial Savings Service Released Premiums are paid on the 5th business day of the month following the loan being delivered and accepted by Colonial Savings. These funds are deposited into your primary FHLBank demand deposit account.
How am I paid for Loans sold to Capital Markets Cooperation Funding (CMC Funding)?
CMC Funding will email a Funding Memo to the Selling PFI on a per Serviced Loan basis. The Selling PFI is to confirm the amounts in the Funding Memo and if the amounts are correct, select the Accept hyperlink embedded in the body of the Funding Memo email. Upon receipt of the approved Funding Memo email, CMC Funding will wire the SRP payment, net of the required escrow balance and fees, on the CMC Funding Date as specified on the Funding Memo directly to the PFI.
What types of modifications are eligible?
You can re-amortize and modify loans that have received large curtailments under the following conditions:
- Minimum allowable curtailment for a modification is the greater of $5,000 or 10% of the current principal balance of the mortgage, and the curtailment was applied within 60 days prior to the note modification date.
- Modification allows for full amortization of the mortgage by its maturity date.
- A modification cannot extend the terms of the note or change the note rate.
Are streamline refinances allowed in the MPF Program?
Yes, streamline refinances are allowed under the MPF Program. To be eligible, the refinanced mortgage must:
- Be originated or serviced by the PFI, and the PFI must have access to the original or a copy of the original underwriting file;
- Be a conventional fixed-rate, level-payment first mortgage, a non-negatively amortizing adjustable rate mortgage, or a balloon mortgage;
- Have the same borrowers as the mortgage being refinanced;
- NOT provide payoff of any subordinate financing;
The refinanced mortgage must also have:
- New signed loan application
- New “in-file” credit report
- Verification of income of the existing mortgage loan application, provided the income has not declined
- Original appraisal provided the PFI represents and warrants there has been no decrease in the market value
For more information on streamline refinance requirements view Underwriting Guide Chapter 3.3.
Does the MPF Program purchase Government Loans?
All fixed-rate FHA/VA, HUD Section 184 and RHS Section 502 loans are eligible to be sold under the MPF Program. You must be approved through the specific government agency in order to sell these loans under the MPF Program. A separate and specific government master commitment is required.
Who should I contact to apply for the MPF Program?
Please contact the MPF Account Manager, Chris Endicott, at 785.438.6087. Applications are also available on our website.
What is the cost to apply for the MPF Program?
There is no cost to apply for the MPF Program.
What if I don’t want to retain the servicing on the loans I sell?
The MPF Program offers two different options if you do not wish to retain the servicing for loans sold. A Concurrent Servicing Sale option or a Whole Loan Servicing transfer is available. You have the ability to sell the servicing on these loans as you sell them under the program. Both options will pay you a Servicing Released Premium (SRP).
Who is responsible for underwriting these loans sold under the MPF Program?
As the loan originator, you are ultimately responsible for underwriting the loans you sell under the Program. You can manually underwrite the loan or use the automated underwriting systems of Desktop Underwriter and Loan Prospector. Another option is to outsource the underwriting through a mortgage insurance company or other group.
What is a Custody or Uncertified Loan Fee?
Custody fees are charged in connection with your Collateral File, submitted to the MPF Program Master Custodian. You can review your Custody Reports on the eMPF website to determine why a fee applies by following these steps.
Go to eMPF.
Log into the system.
Select – Reports
Select – Custody Reports
These reports provide you with loan information and an explanation for any custody fees.