Putting Values Into Action: How the MPF® Program Helps Us Serve Our Members and Communities

Putting Values Into Action: How the MPF® Program Helps Us Serve Our Members and Communities

By Robin Grimes, AVP Real Estate Lending, SPIRE Credit Union

Like many credit unions, SPIRE is driven by a set of core values: showing that we care; improving lives by empowering our members to be financially successful; and giving back to our communities. We strive to be Minnesota’s best credit union, so we’re always looking for new ways to meet our members’ needs. That’s why, in 2019, we teamed up with the Mortgage Partnership Finance® (MPF) Program through the FHLBank Des Moines to sell mortgage loans into the secondary market, using the MPF Traditional and MPF Xtra® products.

Why the MPF Program? The Federal Home Loan Banks share our goals of improving lives and promoting successful homeownership, and they provide the MPF Program to eligible member financial institutions as a way to put those values into action. This commitment shows, both in the design of the MPF products and the quality of training and support offered by the Program.

In the short time SPIRE has worked with the MPF Program, it has allowed us to:

Begin servicing the loans we sell into the secondary market. One feature that attracted us to the MPF Program was the option to retain servicing, which lets us maintain our relationships with members. Servicing was new to us when we joined, and the people at the MPF Program walked us through the entire process. Since then, we’ve continued to appreciate the ongoing training and support they provide, as well as the free, on-demand courses they offer through the MPF University.

Expand our product offerings. Partnering with the MPF Program helps SPIRE serve a broader membership base by providing a wider selection of competitively priced mortgage products. SPIRE has seen tremendous growth since we closed our first MPF loan in April 2019, and now service more than 1,500 loans sold into the MPF Program. This is especially important to us, because statistics show that if a mortgage is with a particular financial institution, members are more likely to stick with them for all their financial needs.

Give more to our communities. The COVID-19 crisis has challenged us to protect the lives and livelihoods of our members, employees, and communities, and it’s been an opportunity to show them how much we care. Last year, we were able to donate a total of $250,000 to 50 area nonprofits with the help of the extra income we’ve received through the MPF Program – both servicing fees and the credit-enhancement fees we earn for sharing a portion of the credit risk for loans sold through the MPF Traditional products.

If your credit union is looking to access the secondary mortgage market, strengthen relationships with members, and find new ways to put core values into action, I recommend partnering with the MPF Program and taking advantage of the products and resources they provide. You can learn more about the MPF Program at fhlbmpf.com.