Mortgage Purchase Program FAQs

Advantage MPP

Corporate Resolution

  • Who is allowed to sign Advantage MPP documents?

    Advantage MPP contracts can only be signed by the authorized signors listed on the most recent copy of the MPP Corporate Resolution we have on file for your Bank.  Contact the MPP department if you have further questions.

  • What does the “or others designated in writing by” line mean?

    This means that the person listed on this line has the authority to authorize other people, not listed on the MPP CR, to perform such things as signing notes, and selling loans.  It is a good idea to have someone from the body of the MPP CR listed on the “or others designated in writing by” line to allow flexibility.

  • What authority do the people listed on MPP CR have?

    The people listed on the MPP CR have the authority to sign Master Commitment Contracts, take out trades, and sign collateral documents.

Collateral Files

  • What needs to be in the file?

    Collateral file documents for each loan should be in a manila file folder, clearly labeled with the current loan number and borrower’s name.  A Schedule of Mortgages (LAS generated at loan delivery) should be used as a cover sheet for the package.  Collateral files should contain:

    • Original Note endorsed in blank without recourse
    • Copy of the signed mortgage sent for recording
    • Copies of any interim assignments that were sent for recording
    • Copies of POA sent for recording, as applicable
    • Final Title Policy
  • Where do I send the Collateral File?

    If your organization’s trust department is NOT acting as your custodian or if your organization is selling the servicing rights, then US Bank is the document custodian.

    Advantage MPP Contacts list


DUO Multi-factor Authentication

  • What is Duo Security?

    Duo Security is a company that provides a cloud-based software service that utilizes two-factor authentication to ensure secure access to services and data. Learn more clicking here.

  • What is two-factor authentication?

    Two-factor authentication provides a second layer of security to any type of login, requiring extra information or a physical device to log in, in addition to your password. By requiring two different channels of authentication, we can protect user logins from remote attacks that may exploit stolen usernames and passwords.

    The factors may include:

    • Something you know:  A unique username and password.
    • Something you have:  A smartphone with an app to approve authentication requests.
    • Something you are: Biometrics - like your fingerprint or a retina scan.
  • Why do we need two-factor authentication?

    Login credentials are more valuable than ever and are increasingly easy to compromise. Over 90% of breaches today involve compromised usernames and passwords. Two-factor authentication enhances the security of your account by using a secondary device to verify your identity. This prevents anyone but you from accessing your account, even if they know your password.

  • How will Duo change my login experience?

    When logging in to an application that is protected by Duo, you will be entering your username and password. The password used will be a password set up by you, and you will have the ability to reset/change without having to reach out to the service desk. After inputting your login information, Duo requires you to complete a method of second-factor authentication. This is typically confirmation from the Duo app on a registered device.

  • Will I need to use Duo for other FHLBank Indianapolis applications?

    The Duo registration that you will be setting up will work for both the Member Link Portal and LAS.

  • What if I do not want to download the Duo app on a device, can I still access LAS?

    When you register for Duo, it will ask for a phone number that can be used for an automated “call back” to authenticate identify. This can be done in place of authenticating identify using the Duo app.

  • How do you log in to LAS?

    In a web browser, navigate to LAS.  The first time you login, you will need to reset your password.  You can do this by clicking the “Trouble Signing On?” link in the bottom left corner.

    Note: Passwords will need to be a minimum of 12 characters, have a lower-case alpha character, and upper-case alpha character, a special character, and a numerical character. You will be able to reset your password by using this link in the future.

    Select trouble signing on link?

    Enter your username and click “Send Request” – this will take you to the Two-Factor Authentication screen, where you can choose your authentication method.

    Enter username and select send request button Select authentication method

    Once you complete the DUO two-factor authentication, you will be taken to the Reset Your Password screen.  Supply your new password in both boxes and click Reset.

    Enter new password, confirm new password, and select Reset button

    You will then be taken to the LAS home page where you can access your FHLBank Indianapolis account information.

  • Do I need to register more than one device with Duo?

    It is recommended that you register more than 1 device with DUO, so that if something happens to your primary device, your LAS access is not interrupted.  

    To add an additional device, navigate to LAS, enter your login credentials, and press Enter.  If you have DUO setup to automatically send you a push, you will need to hit ‘Cancel’, then ‘Dismiss’.

    Select cancel button Select dismiss button

    Go to ‘Settings’ and select ‘Add a new device’, then send a DUO request to your existing device.

    Select settings button Select add new device link Select send me a push buttong Select deny button or approve button

    Select device type (Mobile Phone, Landline, etc.), then scroll down to click ‘Continue’.  Enter the new phone number, click the checkbox to confirm the number, then click ‘Continue’.

    Select device type Select continue button Enter phone number, check box, and click continue button

    On the ‘My Settings & Devices’ screen, it shows the list of linked devices.  You can select a Default Device, and tell it what to do when you log in.  You can choose between asking every time, automatically sending a DUO push, or automatically calling you.  Click ‘Save’ if you have made any changes.

    Linked devices shown on the My Settings & Devices screen Select your default device and tell it what to do. Click the Save button if you've made any changes.

    If you need to change your device settings later, this screen can be accessed via ‘Settings’/’My Settings & Devices’.

    Select settings button Select my settings and devices link

  • I have a new phone. How do I register it with DUO?

    If your phone number has changed, and you do not have a second device registered, contact the Service Desk at or 800-288-6697, so they can send an updated QR code.

    However, if your new phone has the SAME phone number as your old phone, you can register your new device yourself. Navigate to LAS, enter your login credentials, then press Enter. If you have DUO setup to automatically send you a push, you will need to hit “Cancel”, then “Dismiss”.

    Enter username and password and select Enter button Select Cancel button Select Dismiss button

    Go to “Settings” and select “My Settings & Devices”.  Use the “Call Me” verification option.

    Select settings button Select my settings and devices link Select call me button

    Click on the settings icon next to your phone number, then select “Reactive Duo Mobile”.  Follow the on-screen prompts to add the new device.

    Select icon button next to your number Select Reactivate Duo Mobile button Select device type Select I have Duo Mobile button Activate Duo Mobile


  • Does signing a Note with an electronic signature make it an eNote?

    No. An eNote must be created by an eClosing system and result in a transferrable record that meets the standards of the Electronic Signatures in Global and National Commerce Act (ESIGN Act). The proper eNote will be in an approved ‘Smart Doc’ format for compatibility with eVaults and the MERS eRegistry.

  • Are there prerequisites to selling loans with eNotes to FHLBI?

    Yes. The Seller must first be approved to sell eNotes. The approval process includes confirmation that the Seller can complete eClosing as well as testing with MERS, MPP and the document custodian. An eNote application/questionnaire is available on the website under Advantage MPP Materials.

  • Does a Seller need to use an eClosing system to create the eNote?

    Yes. An eClosing system is necessary to create, sign and save the eNote in the proper ‘Smart Doc’ format.

  • Does FHLBI permit hybrid closings?

    Hybrid closings would include the borrower signing documents at closing with electronic signatures and some documents, such as the Note and/or security instrument (Mortgage or Deed of Trust) as a wet signature. A Note not signed electronically in the proper Smart Doc format is not considered an eNote.

  • Why is an eVault necessary for storing eNotes?

    An eNote is created, signed, and stored electronically so it is vital that it includes the tamper seal and is stored properly once it is created. The storage of the document in an eVault allows for storage as well as transfer of the Authoritative Copy (official/original version) to other eVaults. The eVault is also the mechanism used to facilitate changes in the MERS eRegistry.

  • Why is it necessary to register the eNote in the MERS eRegistry?

    Since there is no such thing as a hard copy of an eNote, the eRegistry is necessary to track where the ‘original’ exists (location), who is the holder of Note (Controller), etc.

  • Is the Seller required to have their own eVault for the origination and sale of eNotes?

    Yes. The Seller must have their own access to an eVault to properly store eNotes until the date of transfer. Upon sale the Seller uses the eVault to deliver a copy of the eNote from the existing eVault to the document custodian’s eVault and initiate the adjustment of the ‘rights holder’ positions in the eRegistry.

  • Does the Seller need to have a MERS membership?

    Yes. A membership with MERS is necessary to register and initiate changes within the eRegistry.

  • Does FHLBI require the Seller to assign the mortgage to MERS?

    No. The loan does not need to be assigned to MERS to have the eNote registered in the eRegistry. MERS has created a special membership known as the ‘MERS Patron Membership’ specifically for members of the Federal Home Loan Banks which will allow usage of the eRegistry without requiring the assignment. Contact MERS for more details on the MERS Patron Membership. ( or 800-646-6377).

  • Can a Seller with an eVault also operate as the document custodian for eNotes sold to FHLBI?

    No. This is something that may change in the future but at the present time we are requiring all eNotes sold to FHLBI to be held by US Bank as the document custodian.

  • Is the loan allocation and delivery process in LAS different with eNotes?

    Not really. If the loan includes an eNote, the loan should be identified as such in LAS. A check box has been added to LAS as well as a field for the eRegistry number which should be updated when the loan is added to LAS. Otherwise, the actual allocation and delivery process is unchanged. Of course, the delivery of the Note to the document custodian is different.

  • When selling eNotes to FHLBI, is it still necessary to send executed but unrecorded assignments to the document custodian in some cases?

    Yes. This is not depended on the medium of the Note but as to do with whether the lien is assigned to MERS or not. If the lien is assigned to MERS, either as a MOM loan or with subsequent assignment, the unrecorded assignment to FHLBI is not necessary. If the lien is to be held in the name of the Seller/Servicer, then an executed but unrecorded assignment to FHLBI is still necessary to be provided to and held by the document custodian. This is likely to occur if a Seller is utilizing the MERS Patron Membership where the loan has an eNote but is still assigned to the Seller/Servicer.

  • Are loans with eNotes serviced differently than loans with paper Notes?

    Standard servicing requirement per the MPP Guide still apply.

  • Does a servicer of loans with eNotes need to have access to an eVault?

    The servicer must have access to an eVault which is fully integrated with the MERS eRegistry to enable them to record payoffs, charge-offs, etc. In cases where it is necessary for the servicer to obtain possession of an eNote to undertake legal action, a form may be submitted to the document custodian to request the Location and Control be transferred to the servicer’s eVault until the action is completed.

  • When selling an eNote to FHLBI, who should be listed in the different eRegistry ‘Rights Holder’ positions?
    • Controller: Federal Home Loan Bank of Indianapolis
    • Location: US Bank (Document Custodian)
    • Master Servicer: Name of the mortgage servicer
    • Delegatee for Transfers: US Bank
    • Secured Party: Leave this blank. This field is used when pledging a loan as collateral and is not for use when selling a mortgage loan through Advantage MPP
  • Why is it necessary to name a ‘Delegatee for Transfers’?

    In a paper Note environment, FHLBI depends on the document custodian to handle storage and movement of the original Note. Similarly, in the case of an eNote, FHLBI depends on the document custodian to handle storage and movement but in this case the movement is achieved by making changes to the ‘Rights Holder’ fields in the eRegistry. By setting the document custodian as the Delegatee for Transfers, this enables the document custodian to handle transfers of Control and Location on behalf of FHLBI.


  • I saved my loan without errors. Why is it displayed in red instead of green when I try to allocate?

    There are various levels of checks in LAS.  When you save a loan, LAS performs basic checks to ensure the math is correct based on the dates and amounts entered, and that all the mandatory fields necessary for saving are filled.  When you allocate, LAS runs another level of checks to make sure the loan complies with some basic business rules.  It is possible that a loan which was saved without error may have business rule violations - such as the DTI being too high for Advantage MPP, or a field required for allocation has been left blank.  You can run the compliance checker to find out the exact reason the loan is in red.

  • What should I do if I cannot fill an MDC?

    Contact an MPP team member to discuss your options.  They may be able to extend the MDC settlement date or adjust the MDC rate band/amounts to accommodate replacement loan(s).  If replacement loan(s) cannot be found, the MDC will need to be paired-off.

  • I have delivered the MDC. What do I do now?

    Print out the Schedule of Mortgages from the MDC info screen and use it as a cover letter to send your collateral package to your document custodian.

  • How do I request LAS access for a new employee?

    LAS Access is granted via the ‘LAS User ID & Password Request’ form, which is located on the FHLBI website. 

    1. Navigate to the FHLBI website. 
    2. Select ‘Advantage MPP’ from the top of the site.
    3. Select ‘Advantage MPP Materials’ in the sub-navigation.
    4. Scroll down to the ‘Forms’ section and select the ‘LAS User ID & Password Request’ form.

    Fill out the form, have it signed (e-signature is fine), and email it to  The form must be signed by an individual authorized on your corporate resolution for MPP actions.  

    New LAS users will be assigned a LAS User role from the list below.

    • Manager - Includes viewing pricing, trading authority, uploading and adding loans, search functions, and reporting functions.  
    • Trader - Has all the abilities of a manager but is not the main POC for LAS issues. 
    • Shipper - Includes viewing pricing, uploading /adding loans, search functions, reporting functions and completing the sale.
    • Document Custodian - Only be able to perform document certification. 
    • Pricing Agent - Only able to view pricing. 

    Once access is requested and confirmed by the MPP department, new LAS users will receive an e-mail from the Service Desk with further details on registering for DUO and signing into LAS.

  • I have allocated my loan, but I do not see the deliver button.

    Each MDC has a $10,000 variance up/down.  If the loan is outside the variance amount, LAS will not allow you to deliver until the MDC is adjusted to accommodate the loan.  Please contact an MPP team member  for assistance.

  • Can I allocate more than one loan to an MDC?

    Yes, as long as the loans are within the rate band for the MDC.  Some sellers prefer to have one loan per MDC, other prefer to put multiple loans in one MDC.  It is all up to how you want to manage your pipeline.

  • Can I allocate one large loan to two smaller MDCs in order to fill them since a loan fell out?

    No. MDCs can contain multiple loans, but each loan can only be allocated to one MDC.

  • The MDC funded today. Where can I find the report that tells me how much was paid?

    The report you need is called ‘The Funding Schedule’.  Type the MDC number in the Quick Search box and click ‘Go’.  This will take you to the MDC Information Screen.  Click the green ‘Run/Download Funding Schedule’ towards the bottom of the page.


  • What is the LRA?

    The LRA is a Lender Risk Account established as a form of credit enhancement for all loans within the pertaining Master Commitment Contract (MCC).  The LRA is funded based on each loan balance purchased within the MCC.  If the loans continue to perform and the LRA is not used to cover losses, the LRA is then released back to the selling Member over time.

  • When do LRA releases occur?

    LRA releases are based on the terms of the Master Commitment Contract (MCC). Since 2011, all MCCs include terms for an annual release.  The LRAs become eligible for releases beginning on the 5th anniversary of the MCC closing date.  The release occurs upon the month-end processing at the conclusion of the anniversary month.

  • How are LRA releases calculated?

    All LRA release calculations are based on the ‘original’ LRA balance which is the balance as of closing of the pertaining MCC.  The retention schedule located on page 3 of each MCC indicates the percentage of the LRA to be retained at each release interval.  Any funds in excess of the calculated retention amount is eligible for release. (The original LRA amount may be adjusted down if a loan purchase is reversed due to a QA repurchase or early payoff.)

  • Why do releases not occur in some cases?

    The LRA is established as a form of credit enhancement to cover incurred losses.  If the pertaining MCC/LRA includes loans with pending losses, the LRA is “locked” to prevent releases until the pending loss is resolved.

  • If a release doesn’t occur in a given year, what happens to the LRA funds?

    Unless used to cover losses, the LRA funds remain, and they become eligible for release to the Member in subsequent years.

  • When is the LRA Balances report available in Member Link?

    The LRA balances are recalculated as part of the month-end processing which is completed on the first business day of each month.  Consequently, the LRA Balances Report becomes available on the second business day of the month.

Loan Servicing

  • What is the Monthly Reporting Process?

    1st Business Day – Processing Cycle Begins MPP servicers begin sending reports with a month-end cutoff to BNYM. 

    2nd Business Day – New Loan Setup Process.   BNYM moves all new loans added to MPP from the previous month into the active system. 

    5th Business Day – Servicer Report Due Date.   MPP servicers are required to have the necessary monthly reports to BNYM by this day. 

    1st Business Day through the Cycle Close – Preclose Process Throughout the processing cycle, BNYM can run a preclose on MPP servicers. This preclose process allows for the review of loan level and servicer level information as it would appear if BNYM actually closed that servicer for the given cycle. This preclose process allows the servicer accounting specialists to catch potential problems and make necessary changes prior to closing the cycle. Additional precloses can be run until the actual close date. 

    13th Day of the Month – Actual/Actual Portfolio. Close BNYM closes the monthly processing cycle. Once the cycle is closed, no further changes can be made for that servicer-cycle combination. 

    14th Day of the Month – System Update.   Assuming the processing cycle was closed on the 13th, BNYM’s system will be updated to reflect all new loan level and servicer level information by the morning of the 14th. 

    14th Day of the Month (NAW and Cash Transaction Reports Available) - Assuming the processing cycle closes on the 13th, BNYM’s system will generate a notice of automatic withdraw (NAW) report summarizing the amount expected to be remitted by the servicer. The cash transaction report is also available, which provides loan level support for the NAW. NAW information is provided to the MPP servicers and to FHLBI—this is the amount that will be due on the 18th of the month. 

    18th Day of the Month – Required Payments are Due to FHLBI On the 18th of the month, the amount specified on the NAW report is transferred out of the participating seller’s P&I custodial account at FHLB