• MPF 125, MPF 35, MPF Direct, MPF Government, MPF Government MBS, MPF Original, MPF Xtra
  • June 17, 2024

People Helping People: How the MPF® Program Supports the Credit Union Philosophy

People Helping People: How the MPF® Program Supports the Credit Union Philosophy

by Charlie Kilburg, Vice President of Mortgage Lending, Ascentra Credit Union

Like many credit unions, Ascentra is dedicated to the philosophy of “people helping people” and committed to serving our members and communities. We provide financial services to nearly 42,000 members in Iowa and Illinois, keeping our motto of “listening, caring, doing what’s right,” at the heart of everything we do. When we began selling mortgage loans through the Federal Home Loan Bank of Des Moines’ Mortgage Partnership Finance® (MPF®) Program about two decades ago, we were drawn by the values our organizations shared: Like credit unions, the FHLBanks are cooperatives dedicated to serving their member-owners. Like us, they focus on providing financial opportunities and supporting the economic health of our communities. And through the MPF Program and other services, they provide tools to help credit unions meet these goals.

Building Our Value to Members

Unlike most investors, the MPF Program doesn’t charge loan-level price adjustments (LLPAs) for mortgages sold under its MPF Traditional products, so our members won’t have to pay additional fees based on their loan-to-value ratio, credit score or other loan attributes. This unique feature sets us apart from our competition, attracting both existing and new members. Borrowers may not be familiar with LLPAs, but they recognize that these “rate bumps” (as we sometimes call them) raise the cost of their loan. We’re happy to let them know that with MPF Traditional, if you’re approved, you’ll have the rate advertised.

Building Our Value to Communities

As housing prices and the cost of living have risen, it has become increasingly difficult for first-time homebuyers to save enough to cover their down payment and closing costs. By pairing the competitive rates we’re able to offer through the MPF Program with assistance from grant programs provided by our local FHLBank, we’re making homeownership possible for many more people in our communities. Inspired by the FHLBanks, Ascentra has also created our own supplementary grant program so we can empower even more first-time homebuyers. In addition to providing funding for area nonprofits, offering scholarships and encouraging our employees to volunteer their time, opening doors to homeownership is one more way we’re supporting our communities.

Building Member Relationships

When homebuyers become members of our credit union, they begin a lifelong partnership that gives them access to all the other services we offer beyond mortgage lending. We maintain that relationship and ensure a positive member experience by servicing all the loans we originate, so we appreciate that the MPF Traditional products provide the option to retain servicing.

Credit unions share an important philosophy—a commitment to providing our members and communities with opportunities to grow and thrive. I encourage you to learn more about the benefits of the MPF Program and the many other ways FHLBank membership can help your credit union fulfill that commitment.


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