Actual/Actual Remittance features an investor reporting and remittance option similar to agency
actual/actual and a competitive up-front price. This option is structured so that Participating
Financial Institutions (PFIs) transfer funds to their MPF Bank non-interest bearing custodial
deposit account whenever the collected principal and interest (P&I) net of servicing fees exceeds
$2,500. This structure is easy for back-office operations. PFIs will find the actual/actual
remittance option particularly attractive if they value the up-front price benefit and are
knowledgeable in actual/actual investor reporting.
Characteristics
| Remittance Amount ............. |
Actual P&I collections, less a servicing fee |
| Accounting cut off................. |
Last day of calendar month |
| Investor Reporting ............... |
By the 5th business day of the month following the cut-off |
| Remittance Frequency........... |
Whenever collected principal and interest exceeds $2,500, net of servicing
fees, and the account balance on the first business day of the month |
Requirements
- Non-interest bearing custodial P&I account maintained at the MPF Bank
- Electronic investor-reporting
- Access to the eMPF® website
Actual/Actual Single Remittance offers an alternative option to remit MPF principal and interest.
This option features a single monthly remittance with a simple investor reporting process. The
single remittance option provides significant float income benefit for all P&I payments received
in an accounting cycle. This float value results from all collections received in a calendar month
being remitted on the 18th of the following month (i.e., January collections are remitted to the
MPF Bank on February 18th). Members will find this program attractive if they value the float
income, are new to investor reporting, or prefer a simple and easy remitting process.
Characteristics
| Remittance Amount ............. |
Actual P&I collections, less a servicing fee |
| Accounting cut off................. |
Last day of calendar month |
| Investor Reporting ............... |
By the 5th business day of the month following the cut-off |
| Remittance date................... |
On the 18th of the month following cut-off, or prior business
day if the 18th is not a business day |
Scheduled/Scheduled Remittance features a competitive up-front price and an investor-reporting
concept similar to agency scheduled/scheduled. With the scheduled/scheduled option,
scheduled monthly principal and interest is advanced through liquidation. A full month of interest
for payoffs and curtailments is paid. Members will find this option attractive if they value the
competitive up-front price and if they have personnel experienced with this remittance type and
sophisticated investor-reporting systems.
Characteristics
Remittance Amount
- Scheduled principal and interest, less a servicing fee (remitted the current month)
- Unscheduled principal (curtailments and payoffs remitted the month following receipt)
- 30-days interest expense on payoffs and curtailments
|
| Accounting cut off................. |
Last day of calendar month |
| Investor Reporting ............... |
By the 5th business day of the month following the cut-off |
| Remittance date................... |
On the 18th of the month following cut-off, or prior business
day if the 18th is not a business day |
|
