WORLDWIDE SECURITIES SERVICES

Mortgage Servicing Bank Account Program (MSP)

Helps residential and commercial mortgage loan servicers make one of their biggest assetstheir servicing
balanceswork harder for them
Residential loan servicers are required to hold principal and interest (P&I) and taxes and insurance
(T&I) balances in segregated, fully liquid custodial accounts to comply with federal mortgage agency
regulations. These regulations also require that custodial accounts must reside at an eligible
depository institution and that deposits must be insured by either the Federal Deposit Insurance
Corporation or National Credit Union Administration up to applicable limits.
Offered since 1991, J.P. Morgans Mortgage Servicing Bank Account Program (MSP) is unique in the
industry. It delivers the potential for greater flexibility and more competitive returns than other
alternatives available to Mortgage Servicers (Servicer).
The MSP program can also be used for commercial mortgages and non-agency private pools.

FEATURES AND BENEFITS

Features

Benefits

Liquidity

Cash is fully liquid at all times

Convenience

Holding all eligible accounts in a single program reduces

complexity for the Servicer

Flexibility

Multiple account types qualify for inclusion in the

program, including a full range of custodial accounts (P&I,
T&I, and principal pass-through accounts)

Safety and security

Cash deposited is held in trust ledger accounts with

JPMorgan Chase Bank, N.A., a national banking
association and member of the Federal Reserve System
Similar to other deposit accounts, trust accounts have
priority over other unsecured general creditors of the
Bank under the Federal Deposit Insurance Act
Deposits are insured up to applicable FDIC limits

Service and Reporting

Supported by a dedicated service team that understands

the sensitive nature of mortgage servicing
Accounts can be monitored and managed through J.P.
Morgans comprehensive suite of Treasury Services
products
Monthly statements provide detailed information on
balances, compensation and rates

2009 JPMorgan Chase & Co. All Rights Reserved. JPMorgan Chase Bank, N.A.
Issued and approved for distribution in the United Kingdom and the European Economic Area by J.P. Morgan Europe Limited. In the United Kingdom,
JPMorgan Chase Bank, N.A., London branch and J.P. Morgan Europe Limited are authorized and regulated by the Financial Services Authority.

Highlights
Leadership and Innovation
Billions of dollars of collateral
managed daily for the worlds leading
broker-dealers and financial
institutions
Services delivered by the market
leader in innovative collateral
management solutions
Introduced ground-breaking,
specialized cash collateral
management structures
CME Group IEF5 Program
SEC Rule 15c3-3 Special Reserve Bank
Account Service
CFTC Rule 1.20 and 30.7 programs
Pioneered international equity triparty in 1992
Created the industrys first fullservice over-the-counter derivatives
collateral management solution
Ongoing investment and innovation,
including a multi-year, multi-million
dollar capital improvement program

Associated Products from

Treasury Services
Client Access (balance and
transaction reporting)
Controlled Disbursement
Funds Transfer
Lockbox

J.P. Morgans MSP program was designed to meet the special needs of mortgage loan
servicers. It combines full compliance with federal mortgage agency requirements with the
potential for better returns and the safety of FDIC insurance. Deposits are securely held
with one of the worlds most capable and trusted financial institutions.

$ Compensation $

Servicer

Servicer
Collection
Accounts

MSP Accounts
Deposit

P&I
Custodial
Accounts

T&I
Custodial
Accounts

Agency initiated draws

Servicer initiated disbursements

for Non-Agency/Private Pools

Servicer initiated

GNMA
FNMA
FHLMC
Trustee or
Paying
Agent

Taxes &
Insurance
Disbursements

Investors

Investors

How it works:
Mortgage Servicer establishes the Mortgage Servicing Bank Account agreement with
J.P. Morgan.

P&I, T&I, and P&I pass-through accounts are added to or deleted from the MSP program in
accordance with Mortgage Servicers instructions.

Mortgage Servicer monitors and manages the MSP accounts using J.P. Morgans cash
management product suite.

Collected funds are fully liquid with no withdrawal limitations.

On a monthly basis, JPMorgan Chase pays compensation and provides detailed reports to
Mortgage Servicer.

2009 JPMorgan Chase & Co. All Rights Reserved. JPMorgan Chase Bank, N.A.
Issued and approved for distribution in the United Kingdom and the European Economic Area by J.P. Morgan Europe Limited. In the United Kingdom,
JPMorgan Chase Bank, N.A., London branch and J.P. Morgan Europe Limited are authorized and regulated by the Financial Services Authority.

Contact us at
212-623-0523
or visit www.jpmorgan.com/ccm