MPF Government MBS Product Audit Requirements Reminder
Effective Date: Immediately
The MPF Program would like to remind PFIs who deliver MPF Government MBS Mortgage Loans under the MPF Program of specific Ginnie Mae audit requirements, as is further described on attached “Government MBS Mortgage Audit Disclosure.” PFIs must comply with all applicable Government Agency origination and servicing requirements to maintain accurate and complete records and to be able to provide those records upon request to the applicable Government Agency, the MPF Bank or the MPF Provider. PFIs that service, subservice, or have hired a sub-servicer must ensure compliance.
We have highlighted below some requirements that were the focus of a recent audit. PFIs should review their current written procedures and any applicable supporting documentation as required by the applicable Government Agency to mitigate any future potential findings:
- A form SG340 Release of Documents is required to be submitted to the Custodian within 5 calendar days following the payoff of a loan.See MPF Government MBS Servicing Guide section 1.6.6 for specific details.
- PFIs must perform reconciliations of all custodial accounts within 30 days of the monthly reporting cutoff.See MPF Government Servicing Guide section 2.5 for specific details.
- All proceeds from payoffs or liquidation must be deposited into the P&I Custodial Account within 2 business days of receipt. See MPF Government MBS Servicing Guide section 2.10.6 for specific details.
- PFIs must ensure all data is submitted accurately and is correctly reflected in all systems including applicable Government Agency systems of record. See MPF Program Guide section 4.2.2 for specific details.
In addition to the MPF Guides requirements for Government MBS, PFIs should also refer to the most recent versions of the applicable Government Agency guides to ensure their compliance with the agency’s mortgage documentation and procedural requirements.
- MPF Announcement 2018-35