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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.
Members are also reporting an increase in their mortgage revenue thanks to the fees they are
paid for their sound underwriting practices, and a 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.
If I want to sell servicing, may I still participate in the MPF Program?
Yes. We have an option available to you which allows you 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. The
differences relate mainly to the credit enhancement process. Currently, 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.
What do I need to know about underwriting loans for the MPF Program?
Because you share in the credit risk with the FHLB, you have increased control and decisionmaking
authority over the loans you originate – instead of having to follow the strict
underwriting standards established by the agencies. For standardization purposes, we ask
that our members follow MPF Origination Guide underwriting guidelines. We also consider
credit decisions from approved automated underwriting systems.
Are there any other benefits to the MPF Program?
As a member of the FHLB System, you also benefit from the financial success of the
MPF Program through the receipt of dividends paid on your FHLB stock.
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).
How much does it cost to apply?
There is NO application fee charged for the MPF Program.
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