New MPN Tracking Record Helps Schools to Track Status of Notes
In the December 2000 Shoptalk (Edition 112), Texas Guaranteed (TG) announced the availability of its new Master Promissory Note (MPN) Tracking Report. This report provides schools with information about valid MPNs held by lenders or servicers. The information from the report also helps schools answer borrower inquiries about lender selection and eliminates the question of whether schools must initiate the printing of a new promissory note for borrower signature. The following article clarifies how TG's system houses the information for its MPN Tracking Reports and how the information can be accessed and updated via OnLine Access.
How the Tracking System Works for New Guarantees
When TG guarantees an MPN loan request, it searches its system to determine if the borrower has any prior MPNs associated with the same lender ID. If the borrower has no prior MPNs held by the same lender, then TG creates a new MPN Tracking Record. If an MPN already exists for the borrower/lender combination, then an MPN Tracking Record already exists and a new record is not created.
TG's system maintains one MPN Tracking Record for each borrower/lender combination because, although a lender may possess multiple hardcopy MPNs for a given borrower, the lender is responsible for maintaining only one valid MPN for each borrower. Therefore, as long as the lender holds at least one valid MPN for the borrower, the lender need only report the possession of a valid note to TG one time.
When a new MPN Tracking Record is created on TG's system, the record displays with the following fields:
- Initial Guarantee Date - the guarantee date of the first loan record associated with the creation of the MPN record.
- Borrower Sign Date - the borrower signature date from the initial application associated with the MPN. If this date is not initially provided, the lender can manually enter the date via OnLine Access or by submitting a CommonLine "M" response record through AdvanTG or a POP3 file.
- Last Change Date - the date the MPN record was last changed on TG's system, automatically updated as changes are made to the record.
- Lender Reported MPN Confirmation - provided by the designated lender or its servicer to indicate the possession of a valid MPN. TG initially fills the MPN Confirmation field with "U" (unknown). The lender may update the field with "Y" (Yes - possesses a valid MPN) or "N" (No - does not possess a valid MPN).
- Revocation Date - the date the MPN is revoked. The lender has the option to report that the origination rights on the specified MPN have been withdrawn. The Lender Reported MPN Confirmation field automatically reflects "N" when a date is entered into this field.
Reporting Possession of MPN
Upon receipt of a valid note, a lender is encouraged to report this information to TG via a CommonLine Change Send Record or through OnLine Access. (See instructions below for accessing the MPN Tracking Record via OnLine Access.) A lender also has the same options for reporting when it no longer holds at least one valid note for a borrower.
Reporting Loan Transfers (for lenders)
When TG receives notification of a loan transfer (via the National Student Loan Data System Lender Manifest process or OnLine Access), TG determines if any other loans exist for the borrower under the purchasing lender's ID and creates an MPN Tracking Record if one does not exist. The new MPN tracking record initially reflects "unknown" in the Lender Reported MPN Confirmation field.
If the origination rights were also purchased along with the loan, the new holder is responsible for reporting that it now possesses a valid MPN. The prior holder of the loan need only report that they no longer possess a valid note when it no longer maintains origination rights for any MPN notes for that borrower.
Viewing or Updating a Record via OnLine Access
OnLine Access users can view the MPN Tracking Record for a given borrower by entering the borrower's Social Security Number and selecting MPN TRACKING INQUIRY (PF21) from the Main Menu. If the borrower has more than one MPN record, the MPN Selection screen appears. From this screen, the user can select the sequence number of an MPN to view a specific MPN record.
Lenders and servicers with update capability can access the update screen of OnLine Access by selecting MPN TRACKING UPDATE (PF22) from the Update Menu.
For questions regarding the MPN tracking option or to request a report and/or file, contact TG's Product Support Group at (800) 252-9743, ext. 2222.
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