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In 2008, Iowa Bankers Mortgage Corporation partnered with Federal Home Loan Bank of Des Moines to provide mortgage loan servicing for Participating Financial Institutions that utilize FHLB’s Mortgage Partnership Finance Program.
PFIs that choose to partner with IBMC for the servicing released option can expect a seamless process in which the loan is sold to the MPF outlet, while the servicing is concurrently sold to IBMC. As the centralized servicer for loans sold through this channel, IBMC has a long history of providing exceptional customer service to our PFIs and their customers. Lenders can look forward to the same great customer service that they and their borrowers have experienced when utilizing other IBMC channels.
Following is a series of FAQs to help our lending partners better understand how IBMC's partnership with FHLB can benefit them.
What would be the benefit of utilizing IBMC for servicing FHLB MPF loans?
By utilizing the servicing released option, PFIs have the ability to mitigate costs associated with mortgage servicing. In addition, PFIs that partner with IBMC gain the benefit of having a centrally located safe servicer that will not solicit their customers.
What specific servicing functions does IBMC manage once the loan is sold?
All investor reporting, payment processing, escrow administration, collections, loss mitigation, bankruptcy, year-end/IRS reporting and servicing compliance/quality control are handled by IBMC.
How are PFIs compensated by IBMC?
PFIs are paid a one-time upfront servicing released premium payment when the loan is sold to IBMC for servicing. The SRP is determined by IBMC’s SRP Schedule specific to MPF loans and is based on loan amount, loan type and term.
What type of loans can IBMC service for FHLB MPF?
IBMC can service both FHLB Traditional and Xtra loans.
Can IBMC service government loans under FHLB MPF?
Yes, IBMC will purchase and service FHLB Traditional Government Loans. However, IBMC requires a minimum credit score of 640 and a 30-year term for all government loans.
Which states can IBMC service for FHLB MPF?
IBMC is currently licensed to service loans in the following states: Arizona, Colorado, Illinois, Iowa, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wisconsin.
Why should a PFI choose the servicing released option?
In addition to all the benefits listed above, PFIs can reap the rewards of outsourcing their servicing functions to a trusted partner with an experienced staff that will provide exceptional customer service. PFIs will retain their ability to control underwriting, fees and processes but can rest assured that their customers will continue to receive excellent service after the loan has closed. Additionally, maintaining qualified staff to support a servicing portfolio, and all of the intricacies that go with it, can be a hardship for community banks. Servicing released is a great option for those planning for the future.
More Information
Whether your goal is to free staff up so that they can engage in their community and cultivate business, planning for the future, or if you’re looking into the FHLB MPF Program for the first time, servicing released is a valuable option and an important discussion to have. If you would like to learn more about partnering with IBMC for your FHLB MPF Servicing, please email Stephanie Eggert or call 515-286-4357.
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