FHLBC - MPF in Focus

In with the New

February Is Go-Time for MPF Xtra^® Investor Reporting Changes

By now, you’ve heard about the upcoming MPF Xtra investor reporting changes. Your institution has chosen a reporting method (daily, monthly, or monthly with limited daily reporting). Now, all that remains is the transition. February will be challenging because the two investor reporting systems will overlap: the January cycle will close out under the old system, while the February cycle will begin with the new. Preparing now will go a long way toward ensuring a smooth transition next month.

What’s Different about February?
The schedule for reporting January activity will be accelerated slightly to facilitate the transition:

2/2 Initial reports are due by noon EST.

2/3 Initial turnaround reports (TARs) will be provided.

2/8 Exception clearing reports are due by noon EST.

No later than 2/9 Final TARs will be provided.

Also, daily reporting (including removal transactions for all PFIs, and all transactions for those who choose daily reporting) will begin on February 1, but Wells Fargo will hold these reports until the January cycle has been closed out. That means turnaround reports for February 1–10, which would normally be sent the next day, will be delayed until February 13. (PFIs who choose monthly reporting or monthly reporting with limited daily reporting will receive turnaround reports on the new, normal schedule.)

Tackling the Transition
Even if your institution seems ready to go, extra steps may be warranted to ensure that all goes well in February:

If you haven’t already attended one of our webinars on the transition, it’s not too late. Sessions will be held on January 18 and 26 at 1:00 p.m. CST and run approximately 30 minutes. To register, visit the Education section of www.fhlbmpf.com.

Note that effective February 1, MPF Xtra and MPF Traditional loan level data must be reported on separate files. If you currently report them on the same file, Wells Fargo should have contacted you and provided you with a new file name. If you have not heard from them and would like to request a new file name or have questions, please contact Wells Fargo at servicerconnect@wellsfargo.com.
Pay special attention to the file naming convention. Starting February 1, file names should be whatever they would have been previously, plus an underscore and the date (_MMDDYYYY). (See sidebar for a detailed explanation.)
Contact your service provider to confirm that the required changes will be implemented on February 1, 2017.
Verify that your software can accommodate cumulative reporting on loans that have more than one transaction in a month.
Make sure your institution’s processes are adapted to your chosen reporting method and removal transactions can be reported daily. Also, consider backup provisions for unexpected staff absences.

We’re Here to Help
If you have questions about the transition or problems arise, email us at MPFXtraInvestorReportingAdmin@fhlbc.com or call the MPF Service Center at 877-345-2673.

As always, the file name should include the individual code Wells Fargo has assigned to your institution (the letter c followed by a six-digit number—in this example, we use the fictional code c123456) and exception clearing report file names should start with “ECR_”. The only difference in the new format is an additional underscore, followed by the date (two-digit month, two-digit day, and four-digit year—in this case, February 13, 2017).

Loan level activity file
Old format example: c123456
New format example: c123456_02132017

Exception clearing report
Old format example: ECR_c123456
New format example: ECR_c123456_02132017

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