MPF Program Announces Updates to the Determination of Credit Enhancement for MPF Traditional Products
Effective Date: January 1, 2020
The MPF Program has made updates to the determination of Master Commitment (MC) credit enhancement for all of the risk-sharing products (MPF Original, MPF 35, and MPF 125). As a result of this update, the PFI Credit Enhancement (CE) Obligation may be subject to an adjustment to meet regulatory requirements no later than 30 days after the MC has closed. In addition, the MPF Program is anticipating new minimum credit enhancement amounts for the previously referenced risk-sharing products. We have updated the MPF Program Guide, MPF Traditional Selling Guide and the MC and MC Amendments to reflect these changes.
MPF Traditional Selling Guide
Chapter 12.2.3 of the MPF Traditional Selling Guide has been updated to reflect credit enhancement adjustments that may be required to meet regulatory requirements applicable to the MPF Bank.
MPF Program Guide
Chapter 2 of the MPF Program Guide has been updated to clarify that the minimum CE amounts are detailed in the MC. The MPF Program anticipates implementing new minimum credit enhancement amounts for new MCs or MC amendments executed on or after January 1, 2020.
PFIs should contact their MPF Banks with any questions related to this update.
MPF National Education will offer a webinar at a later date that will provide additional information regarding these updates. Visit the MPF Website to see availability and register for upcoming MPF Webinars.
On November 22, 2019 the MPF Program issued Marketing Bulletin 2019-7 which advised PFIs that they may subscribe to receive notifications directly from MPF Communications. Visit the MPF Communications page to learn more and sign up.*