The MPF® Program provides an alternative to holding fixed rate loans in portfolio creating additional liquidity opportunities for Participating Financial Institutions (PFIs).

With the MPF Xtra product, participating Federal Home Loan Bank PFIs are able to sell fixed-rate conforming loans into the secondary market, leveraging their FHLB membership to gain access to liquidity. Under MPF Xtra, PFIs of participating FHLBs can use the MPF Program to:

•  Offer fixed-rate residential mortgage loans to their borrowers and deliver those loans into the  secondary market;
•  Retain the servicing rights and servicing fee income, preserving the ability to cultivate relationships  to customers; and,
•  Transfer the interest rate and prepayment risks as well as the credit risk of the associated loans to an investor.

Because the PFI does not retain credit risk for loans sold under the MPF Xtra product structure, there are no risk-based capital or credit risk collateral requirements for the PFI. Additionally, for depository institution members, there is no leverage capital requirement.

MPF Xtra offers PFIs of participating FHLBs an attractive alternative for selling first mortgage loans they originate, allowing them to take advantage of a product designed to transfer loan risks to the investor

Features
	Term	Up to 30 years, fixed rate, fully amortizing
	Maximum LTV	95%
	FICO Score	Varies depending on loan characteristics
	Loan limits	Agency conforming, conventional only
	Occupancy	Owner occupied (1-4 units) and second homes
	Property type	All types except co-ops and non-owner occupied
	Underwriting	Follow the MPF Origination Guide and MPF Xtra Manual
	Commitment delivery	3, 10, 20, 30, and 45 business days
	Pricing	Premium and discount pricing available
	Remittance	Actual/Actual, according to the MPF Xtra Manual
	Servicing	25 bps, follow the MPF Servicing Guide and the MPF Xtra Manual
	Master Commitment size	$5 million minimum, best efforts

•  Competitive execution
•  Retain valuable servicing fee income and borrower relationships
•  Economic value for quality loans
•  Electronic processing through the eMPF® website

The MPF Xtra product is designed for any participating FHLB member that is actively engaged in mortgage lending in their community, seeks to minimize risk, and has a high regard for the value of the customer relationship. With this product, members gain access to secondary market liquidity, minimizing the interest rate and prepayment risks of the loans and transferring the credit risks to the investor. The originating member institution can retain the servicing rights and the associated, valuable, customer relationship.

For general information about the availability of the MPF Xtra product in your district, contact your relationship banker or the MPF Xtra Service Center at 1-888-362-0011.