MPF® 125
Funding mortgage loans under the MPF 125 product allows your Federal Home Loan Bank (FHLBank) to manage the liquidity, interest rate, and prepayment risks of the loans while you manage the credit risk. MPF 125 establishes the FHLBank First Loss Account at the time of funding and provides you with additional income for sharing in the credit risk with your FHLBank. When a loss occurs, the credit risk sharing feature of MPF 125 allocates those losses after borrower equity and private mortgage insurance are depleted through a loss structure designed to share the remaining loan loss between the FHLBank and you.
Features
- The additional income is performance-based, paid monthly net of any losses allocated to the First Loss Account
- Remittance options: Actual/Actual, Actual/Actual Single Remittance, Scheduled/Scheduled
- First Loss Account: 100 basis points of the principal amount of the Mortgage Loans funded under a Master Commitment at the time of funding
- Servicing Fees: 25 basis points (0.25%) annualized, paid monthly
- Delegated Underwriting; DU and LPA maybe used to assist in making the underwriting decision
Benefits
- No loan-level price adjustments
- Competitive execution
- Additional income for quality loans
- Same-day delivery and funding
- Servicing-released options available
Remittance Options
Actual/Actual Remittance features a remittance option similar to agency actual/actual, with monthly reporting and competitive up-front price. This option is structured so that Servicers transfer funds to their FHLBank non-interest bearing custodial deposit account whenever the balance of the P&I Custodial Account (excluding Servicing Fees) exceeds $2,500 and then any remaining account balance on the first business day of the month after the accounting cut-off date.
Characteristics
- Remittance Amount – Actual P&I collections, less a servicing fee
- Accounting Cut-Off Date – Falls on the last business day of calendar month
- Investor Reporting – Reports submitted by the fifth business day following the accounting cut-off
- Remittance Frequency – Whenever the balance of the P&I Custodial Account (excluding Servicing Fees) exceeds $2,500 and then any remaining account balance on the first business day of the month after the accounting cut-off date.
Requirements
- Non-interest bearing custodial P&I account maintained at the FHLBank
- Electronic investor-reporting (using either an Excel or ASCII file)
- Access to the MPF Master Servicer's secure website, ServicerConnect®
- Remittance Amount – Actual P&I collections, less a servicing fee
- Accounting Cut-Off Date – Falls on the last business day of calendar month
- Investor Reporting – Reports submitted by the fifth business day following the accounting cut-off
- Remittance Date – The 18th calendar day of the month following the accounting cut-off. If the 18th falls on a weekend or holiday the remittance day is the business day prior to the18th.
- Electronic investor-reporting (using either an Excel or ASCII file)
- Access to the MPF Master Servicer's secure website, ServicerConnect®
- Remittance Amount
- Scheduled P&I, less a servicing fee (remitted the current month)
- Unscheduled principal (curtailments and payoffs remitted the month following receipt);
- 30-days interest expense on payoffs and curtailments
- Accounting Cut-Off Date – Falls on the last business day of calendar month
- Investor Reporting – Reports submitted by the fifth business day following the accounting cut-off
- Remittance Date – The 18th calendar day of the month following the accounting cut-off. If the 18th falls on a weekend or holiday the remittance day is the business day prior to the 18th.
- Electronic investor-reporting (using either an Excel or ASCII file)
- Access to the MPF Master Servicer's secure website, ServicerConnect®
MPF Conventional / Conforming Loan Products
Explore the MPF® Program's conventional / conforming loan products to find flexible solutions that support homeownership.
MPF® Original
Funding mortgage loans under the MPF Original product allows your Federal Home Loan Bank (FHLBank) to manage the liquidity, interest rate, and prepayment risks of the loans while you manage the credit risk of the loans. MPF Original provides you additional income for sharing in the credit risk with your FHLBank. Should a loan loss occur, the credit risk sharing feature of MPF Original allocates those losses after borrower equity and private mortgage insurance are depleted through a loss structure designed to share the remaining loan loss between the FHLBank and you.Learn More
MPF 35
Funding mortgage loans under the MPF 35 product allows your Federal Home Loan Bank (FHLBank) to manage the liquidity, interest rate, and prepayment risks of the loans while you manage the credit risk. MPF 35 establishes the FHLBank First Loss Account at the time of funding and provides you additional income for sharing in the credit risk with your FHLBank. When a loss occurs, the credit risk sharing feature of MPF 35 allocates those losses after borrower equity and private mortgage insurance are depleted through a loss structure designed to share the remaining loan loss between the FHLBank and you.Learn More
MPF® Xtra
With membership comes rewards. Sell us your fixed-rate, conforming loans and we will resell those loans through our partnership arrangement to Fannie Mae. This product does not include risk-sharing which means no collateral or risk-based capital requirements.Learn More
Government Loans
The MPF Program provides liquidity for FHA, VA, and other government loan products, giving members more opportunities to fit borrowers into the products that are best for them.
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