MPF Announcement 2025-46

MPF Traditional Selling – Prorated Real Estate Tax Credits

The MPF Traditional Selling Guide has been updated clarifying that a prorated real estate tax credit may be considered in determining the amount of funds required from the Borrower at closing only when an escrow account has been established and includes the portion of taxes owed by the property seller for the period of time they owned the property. In these cases, the prorated real estate tax credit from the seller may offset all or a portion of the funds needed for the escrow account.

For additional information, see MPF Traditional Selling Guide 2.6.1 Purchase Transactions.

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