Under the MPF Government product, the risks associated with financing loans insured or guaranteed by Government Agencies
(Government Loans) are shared with the Federal Home Loan Bank (FHLB) to maximize comparative advantages. With MPF Government,
members market to borrowers, obtain the insurance or guarantee, and service fixed-rate residential Government Loans.
Who would benefit from the MPF Government product?
Any institution that:
- Values the income derived from originating and servicing Government Loans;
- Is approved to originate and service Government Loans; and
- Is a member of the Federal Home Loan Bank System.
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Features
| Government plan types |
All FHA/VA fixed-rate mortgage types, HUD Section 184 and RHS Section 502 |
| Term |
Up to 30 years fully amortizing |
| Loan limits |
Up to applicable agency loan limits (not to exceed MPF Conventional Loan limits) |
| Occupancy |
Owner occupied (1-4 units) guaranteed by the VA/RHS or insured by the FHA/HUD |
| Underwriting |
Follow applicable agency underwriting guidelines (AU decisions as permitted by FHA) |
| Remittance |
Scheduled/Scheduled, Actual/Actual, and Actual/Actual Single Remittance |
| Commitment delivery |
3, 10, 20, 30, and 45 business days |
| Pricing |
Premium and discount pricing available |
| Master Commitment size |
$5 Million minimum |
| Servicing Fee |
44 bps |
Benefits
- Superior execution
- Economic value for qualifying loans
- Similar processing to GNMA
- Ability to deliver closed loans
- Electronic access through the eMPF® website
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Would you value the superior secondary market execution
and operational ease of our delivery system?
Because of the cooperative nature of the FHLB System, we are able to offer competitive pricing to
our members for Government Loans. The FHLB manages the liquidity, interest rate and prepayment
risks of the loans while the member is responsible for and bears the risk of unreimbursed servicing
expenses (which is comparable to GNMA servicing requirements). The combined effect of our
competitive pricing and your servicing expertise distinguishes the MPF Government product as an
alternative to what is currently available in the marketplace today.
For depository institutions, there is no leverage capital or risk-based capital requirement for
loans sold under the MPF Government product.*
A recent HUD audit along with USAP may be required for member
participation in the MPF Government product.
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