Information, Communication and Announcements
As we all continue to react to the current COVID-19 situation both personally and professionally, it is important to make sure you are getting the correct and most current information about options available for loan underwriting and loan servicing.
Please be sure you are signed up to receive MPF Program Announcements via the MPF Program. Here’s how:
- Simply go to: www.fhlbmpf.com
- At the top of the page, select “Subscribe.”
- Once there, to the left input your name, email address and institution to begin receiving MPF Communications.
You will now receive all information the MPF Program shares on updates to procedures during the current COVID-19 pandemic and beyond.
Delivery Commitments (DC) and Loan Fundings: “Look both ways before clicking the button.”
We know things are hectic. You have a million things going on at once -- loans to close, loans to approve, and in some cases, forbearance plans to discuss. So many distractions may lead to mistakes.
Recently, we have seen a rash of DC locking and funding errors such as DCs locked for the wrong amount or loans funded into DCs for the wrong amount. When this happens, it can lead to unwanted fees for you, and we certainly want to avoid that.
So please, STOP! LOOK TWICE! Then proceed.
- Check to see if you added extra zeros/or not enough zeros.
- Check your comma. Is it in the right place?
- Confirm you are funding the correct loan into the correct DC.
We will be here to help you as best we can, but first and foremost, help yourself by double-checking before you click.
The MPF Program and FHLBank Advances. Never the two shall meet…until now
As you know, the primary function of the FHLBank System is to provide liquidity to our members and mainly that is accomplished through advances. Often, advances and the MPF Program don’t directly align. In the current COVID-19 world, these two products have the ability to come together to provide assistance to you and your borrowers.
On April 7, FHLBank Topeka announced two special low- and zero-rate advance products specifically designed to be used to aid our members with COVID-related issues. For most, that is seen as a way to supplement the PPP Loans you have acquired. Please don’t forget the MPF Program implications as well.
If you are a servicer of loans for the MPF Program, you may be dealing with forbearance and repayment plans for your borrowers. If so, there will soon be a demand for tax and insurance payments to be made. According to the MPF Servicing Guide, you the servicer, must make those payments even if you have not received the money from your borrowers. These special COVID advances could be used to supplement those costs until you recoup them from your borrowers.
Perhaps you have just a few forbearance requests. Instead of proceeding with the actual forbearance, you choose to provide your borrowers unsecured loans to make these payments and keep their loans current. This is another opportunity for our special COVID advances to provide you security against these loans and allow you to provide your borrowers the best interest rates possible to aid them in their time of need.
FHLBank Topeka is working from all angles to provide you all the assistance we can in these unprecedented times. Be sure and take advantage of everything you can to aid your institution and your borrowers.
Recent Article on Mortgage Servicing Marketplace
We recently released an article from Doug Winn, president and co-founder of Wilary Winn LLC. We often turn to Doug for advice on accounting issues related to the MPF Program. Doug authored an article about the state of the mortgage servicing marketplace during our current COVID crisis.
If you haven’t had a chance to read through this helpful resource, you can find it on our Financial Intelligence page.
As we all adapt to social distancing in some form or another, this may be a chance to take advantage of the MPF Program’s educational offerings. MPF Program webinars are accessible from any computer with an internet connection, so please look at what is being offered. Be especially aware of COVID specific webinars to aid in clarifying the ins and outs of forbearance and repayment plans. Below is a sample of upcoming courses.
May 12 Basics of Income
May 27 Title Insurance Basics
Click here to register for any of these or other available complimentary webinars offered by the MPF Program.
“The sun will come out tomorrow”
Of course, we all know these famous lyrics from the song “Tomorrow” and the Broadway play Annie. A song of hope sung at a time where hope seems very far away. Maybe right now you feel stuck in a day that’s gray and lonely. Just remember…bet your bottom dollar “tomorrow” there’ll be sun.
Be safe everyone.
“Mortgage Partnership Finance” and “MPF” are registered trademarks of the Federal Home Loan Bank of Chicago.