MPF Announcement 2025-40

Enhancement to MPF^® Original Master Commitment Resets

Effective Date: May 1, 2025

The MPF Program is pleased to announce an enhancement to the MPF Original product that provides earlier and more frequent Master Commitment (MC) resets. This change is designed to reduce Credit Enhancement (CE) obligations and risk-based capital requirements, improving the overall management of MPF Original MCs.

What’s Changing?

• Currently, MPF Original MCs are reset 10 years after execution.
• Starting May 1, 2025, new MPF Original MCs will reset 5 years after the MC expected completion date, and every 5 years thereafter.
• Existing MPF Original MCs will continue to reset on the original 10-year schedule.

See MPF Program Guide Section 2.2 MPF Original.

Why This Matters?

• Lowering Credit Enhancement Obligations – The reset will reflect paydowns and the performance of the Master Commitment, reducing exposure.
• Reducing Risk-Based Capital Requirements – More frequent resets mean you can more effectively manage your credit risk and capital needs.
• Providing Greater Flexibility – Shorter reset periods improve alignment with your loan portfolios.

This improvement reflects our commitment to evolving the MPF Program to better support you and your mortgage lending strategies.

Please contact your MPF Bank representative if you have any questions or would like to open a new MPF Original MC.

For questions or assistance, please contact the MPF Service Center by using one of the following options:

• MPF Customer Service Portal
• Email: MPF-Help@fhlbc.com
• Phone: (877) 345-2673