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Why should I be interested in the MPF® Program?
Lenders who have joined the MPF Program and are currently delivering loans say they enjoy
the freedom to be competitive within their marketplace and to improve their profitability.
Depending on the MPF product selected, members experience an increase in their mortgage revenue thanks to a credit structure that rewards them for high
quality loans.
How can I become eligible and participate in the MPF Program?
You may be eligible to join if: (1) you are a member of a Federal Home Loan Bank that
is offering the MPF Program; (2) you have experience originating loans; and (3) you have
the ability to report loan activity under either a Scheduled/Scheduled or Actual/Actual
remittance structure, depending on product eligibility.
If I want to sell servicing, may I still participate in the MPF Program?
Yes. Our Credit Enhanced and Government products offer options for members of participating MPF Banks to sell servicing concurrently
along with the sale of the loan asset. Additionally, eligible institutions may sell servicing
on a flow/bulk basis.
I currently sell to the agencies. Do I need to do anything different to my processes?
Very little – there are few differences between the MPF Program and the agencies. For our Credit Enhanced products, the
differences relate mainly to the credit enhancement process. For the Credit Enhanced products, we allow for both
loans funded by the FHLB and closed loan sales. We have electronic capabilities for sending
and receiving transmissions of data and reports, along with direct deposits and debits of funds
to your account at the FHLB. While there are a few additional processes required for the MPF Xtra;™ product, you'll still be working under the same MPF Program operations structure.
What do I need to know about underwriting loans for the MPF Program?
You have increased control and decision making
authority over the loans you originate. For standardization purposes, we ask
that our members follow either the MPF Origination Guide underwriting guidelines, or those from the applicable government agency. Depending on the MPF product selected, we also consider
credit decisions from approved automated underwriting systems.
Are there any other benefits to the MPF Program?
Members of the FHLB System have traditionally benefited from the financial success of the
MPF Program through the receipt of dividends paid on FHLB stock.
How much does it cost to apply?
There is NO application fee charged for the MPF Program.
Who should I contact to get started?
Call your FHLB Relationship Manager or MPF Program marketing representative for
help submitting an application. They will also assist you in getting up to speed on the
MPF Program. To locate a contact at your participating Federal Home Loan Bank,
call 1-877-463-6673 (Info-MPF).
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