With a Second Servicer Option and New Process Enhancements, It’s More Attractive Than Ever

Whether you’re currently selling servicing released under MPF Xtra or you’re still considering it, recent changes to the product are worth a second look: On September 21, we introduced an additional servicer option, creating a competitive marketplace where PFIs can choose the buyer that’s right for them. We’ve also streamlined the transfer of funds and data, making the servicing released alternative easier to choose and use. This is the MPF Program’s first step toward adding more servicing released options under our products, as part of our larger goal to provide PFIs the competitive pricing, execution, and overall experience they want.

You’ve Got Options

In addition to the current servicing released option available through Prospect Mortgage, PFIs now have the opportunity to work with Redwood Trust. Like Prospect Mortgage, Redwood Trust is a Federal Home Loan Bank member and has an established relationship with the MPF Program (Redwood Trust already serves as the end investor for our jumbo product, MPF Direct). Within a competitive servicing marketplace, PFIs will be able to review each servicer’s pricing, process, and execution and make the choice that’s right for them.

A Simpler Way to Sell Servicing

To streamline the process of selling servicing under MPF Xtra, we’re providing additional support for the decision-making and onboarding processes. Under the Redwood Trust option:

• Servicing released premiums (SRPs) have been built into the eMPF transaction website so PFIs have the information they need at the point of decision.
• A net funding transaction has been created to allow PFIs to simultaneously sell a loan, release servicing, and net out escrows in a single transaction.
• Rather than working directly with the servicer to arrange for the sale of the servicing and to complete the secure data transfer, PFIs can now upload electronic scans of mortgage files and other documents through eMPF, which will automatically send the information to the servicer.
• Forms previously required for servicing transfer have been converted into electronic data exchanges, making it easier to transmit the necessary data.

See for Yourself

If you’d like to learn more about the new servicer option or inquire about selling under the MPF Xtra product, contact your MPF Bank representative. Pricing and other information is also available on the eMPF website.