5 Ways the MPF Program Supports Our Local Strategy

The following article by Ian Anderson, Vice President Finance, Elevations Credit Union

Of any credit union in Colorado, Elevations Credit Union lends the highest volume of mortgages. While we lend at this scale, we’ve maintained our focus on local communities and empowering members to reach their goals, especially when it comes to buying a home in our high-cost market.

In 2017, we leveraged our membership with our local Federal Home Loan Bank to begin selling loans into the Mortgage Partnership Finance (MPF) Program. Over the years, several key features of the MPF Program have supported our strategy:

1. Opens doors to homeownership. Every penny counts in today’s environment, especially in a region where home prices are high and offering competitive rates can be a challenge. Elevations Credit Union originally chose the MPF Program because it provided ways to earn additional revenue on mortgage originations.
2. Provides additional ways to earn income. With the MPF Program’s credit risk-sharing products, we can profit from our excellent underwriting performance through credit enhancement income. We also have the option to earn additional income by retaining loan servicing—benefits we pass through to our membership via lower mortgage rates. And because the MPF Traditional products don’t charge loan-level price adjustments, we can lower the cost of homeownership for more borrowers.
3. Helps us attract and retain members. When a prospective member comes to a credit union for a mortgage, it’s because they want to build a relationship with a local financial institution. That’s why Elevations Credit Union strives to retain servicing for every loan we originate. Our mortgage division is one of our primary membership acquisition channels, and the MPF Program is one of the competitive secondary market executions we’ve found that lets us retain servicing.
4. Streamlines our mortgage execution through eNotes. We now use eNotes for about two-thirds of our mortgage originations. eNotes simplify the closing process, which our members love, and it also streamlines our back-office originations because we aren’t mailing wet-signed notes. Since the MPF Program began accepting eNotes, we’ve been able to triple our eligible deliveries to the Program.  
5. Products that fit our strategy. There is no one-size-fits-all secondary market solution. If your credit union is considering the MPF Program, my advice would be to evaluate the variety of delivery options the MPF Program offers. Our FHLBank was very helpful in choosing a product that fits our individual strategy and risk tolerance. If you’re ready to start that conversation or just learn more about the MPF Program, contact your FHLBank or visit fhlbmpf.com.

Elevations Credit Union has grown substantially since we were founded in 1952 with 12 members and $100 in assets. Today, at nearly 180,000 members, and over $3 billion in assets, the MPF Program helps our members achieve homeownership while allowing us to keep our relationship with them as we service their loans.

Elevations Credit Union, NMLS# 717246, is an Equal Housing Opportunity lender.