New Master Servicer Procedures
Change in Master Servicer-Charter Bank
In light of Charter Bank’s recent decision to modify the terms of purchase for MFA loans with credit scores less that 661, Charter Bank felt it was inappropriate to continue as Master Servicer for the 2009 Series E bond issue. In addition, Charter Bank would like to commence the transfer of any loans in the pipeline from Charter Bank to US Bank, as time allows.
The transfer of loans from Charter Bank to US Bank will be initiated after a Participating Lender has executed an agreement with US Bank to deliver MFA loans. After each Participating Lender executes an agreement with US Bank; Charter Bank, US Bank and MFA staff will work in concert to efficiently transfer each loan in the Participating Lenders pipeline. Throughout the transfer process, the focus of Charter Bank, US Bank and the MFA will be to ensure that loans in the pipeline will close and fund as scheduled. To that end, Charter Bank, US Bank and the MFA will work with each Participating Lender to identify and prioritize loans in the pipeline.
Until the time that a Participating Lender is notified by MFA and US Bank to commence the transfer of loans in the pipeline, Charter Bank will continue to perform all duties as Master Servicer, including purchase of loans currently in their pipeline that have not been moved to US Bank, in the same manner as before.
To facilitate the transfer of the loan pipeline, US Bank has agreed to the following:
- All commitments issued by Charter Bank (i.e. Compliance Review, Compliance Approval, etc.) will be honored by US bank. Participating Lenders need not re-submit compliance files to US Bank for re-review.
- For loans not yet submitted for Compliance Review, US Bank will provide a pre-closing Compliance Review in the same manner provided by Charter Bank.
- US Bank will issue Compliance Approval based on a pre-closing review. Participating Lenders may not close a loan without a Compliance Approval notification from US Bank.
- Participating Lenders will be provided with forms and checklists by US Bank that are very similar to the forms and checklists currently in use with Charter Bank.
- To the greatest extent possible, the process of Compliance Review, closing, funding, shipping and purchase of MFA loans from Participating Lenders will remain very similar to the process employed by Charter Bank.
- Participating Lenders that currently use US Bank as a Master Servicer will follow the processes and procedures currently used by US Bank.
- Closed loan files submitted to US Bank for purchase will be Compliance Reviewed prior to loan purchase.
Charter Bank, US Bank and MFA understand that these unexpected changes would cause concern among the Participating Lenders. MFA would like to stress that these changes were not initiated by the MFA. MFA is committed to provide access to our Mortgage Revenue Bond (MRB) and (DPA) Down Payment Assistance programs in the same, efficient manner. MFA’s ability to provide financing to families throughout New Mexico is not affected by this change.
Application for US Bank-Participating Lender
MFA encourages all Participating Lenders to complete an application package with US Bank as expeditiously as possible, to ensure that loans in the pipeline will close and fund as scheduled.
An application package for US Bank is available for download here:
Contact information for US Bank representatives that will assist in preparing the application is as follows:
US Bank Help Desk
1-800-562-5165
You can access the US Bank web portal for Mortgage Revenue Bond Correspondent Lenders here:
The website provides information regarding the MFA programs, as well as manuals, policies and procedures for US Bank. Training schedules, including webinar information, will be provided in the next few days.
As always, MFA staff is available to answer any questions you may have and to provide assistance throughout the application process.
