Credit Risk Sharing
Through the MPF® Program’s credit risk sharing structure, members can limit their exposure, benefit from performance-based rewards, and continue to expand mortgage opportunities in their communities.
Risk Management with Reward Potential
The MPF Program’s credit risk sharing structures are designed to reward members for originating high performing loans. Members can choose from multiple products based on their risk tolerance, earning a revenue stream and being rewarded for strong loan performance.
MPF Program Loans
The MPF Program offers credit risk-sharing options enabling members to reduce balance sheet volatility while maintaining liquidity. For many community lenders, these products have little or no impact on risk-based capital, making them an efficient way to lend responsibly and expand mortgage opportunities.
Members also gain the ability to participate in upside performance through credit enhancement income, a benefit that sets the MPF Program apart from other funding sources.
FHLBank provides first-loss protection, ensuring that your institution’s downside is limited while borrowers continue to access affordable financing.
This approach enables members to serve a broader population of borrowers while keeping institutional risk contained and predictable.
How We Share Credit Risk
The MPF Program enhances member stability by aligning risk management with revenue potential, giving institutions more control over their portfolios and more confidence in lending.
Performance-Based Rewards
The MPF Program’s credit risk sharing products are designed to reward members for originating high performing loans.
Built-In Safeguards
FHLBank absorbs initial losses and caps your institution’s exposure, making risk predictable and manageable.
Balanced Income Opportunities
Credit enhancement, servicing, dividends, and loan sale gains provide multiple revenue streams to offset market fluctuations.
Flexible Options
Select the MPF product that best matches your risk tolerance and balance sheet strategy.
FAQs
Find answers to your most pressing questions on our MPF Products here.
The MPF Program allows for no up-front costs while rewarding members for strong loan performance with additional income opportunities.
FHLBank takes on first-loss protection and limits your total exposure, so your institution’s risk is capped.
Yes. The MPF Program offers a range of products, allowing you to balance risk and reward according to your strategy and tolerance.
Community Lenders Share Their Experience
"The ability to originate loans and sell them through the MPF Traditional products without loan-level price adjustments gives us the flexibility to compete with other lenders. Sometimes members tell us they want to keep their business with our credit union but they’ve received a matching or even better quote than what we’ve initially offered. In these cases, the lack of LLPAs gives us the pricing flexibility we need to compete and continue to serve our membership without sacrificing profitability."
Daniel McLean
Vice President, Quality Control and Secondary Market Sales, Credit Union 1
"We appreciate the flexibility to either hold loans on our balance sheet until an opportune time or sell them immediately, with best efforts or mandatory lock execution—whatever market conditions require. In the current high-rate environment, having the ability to quickly move loans off the balance sheet in moments of market improvement has been especially helpful."
Russ Bernardo
Chief Lending Officer, OCCU
"As we’ve scaled up our mortgage operations, the MPF Traditional products have given TTCU the tools and resources to operate like a larger lender, with much greater flexibility in reporting requirements than other GSEs as well as the option to continue servicing our members’ loans."
Floyd Goode
Senior Vice President, Chief Lending Officer, TTCU Federal Credit Union
"Managing liquidity can be a challenge for lenders when interest rates rise. Texas Tech Credit Union originates a high volume of mortgages for our asset size, which means it’s important for us to sell and transfer loans promptly so we can turn around and provide loans to more members. With the MPF Traditional products, we’ve been able to complete this process quickly and easily, usually within 48 hours versus the seven to 10 days we’d expect with another investor."
Greg Couture
Mortgage Operations Director, Texas Tech Credit Union
"We’ve found the MPF Program to be a friendly introduction to the secondary market. The guidelines are exceptionally easy to follow, and gaining access to Fannie Mae’s Desktop Underwriter® through the Program has made the process even smoother."
Darlene Vigil
Assistant Vice President/Real Estate Manager, State Employees Credit Union
Explore More Resources
eMPF Information
The eMPF Website is a secure transaction portal available to authorized users of member institutions participating in the MPF Program. Explore our video tutorial library on common eMPF processes.
eMAQCSplus
Use eMAQCS®plus for MPF Quality Control and Default Management reporting and pipeline management. Sign up to receive eMAQCSplus credentials for Quality Control and/or Default Management and explore our eMAQCSplus resources.
MPF Data Resources
Access data resources that support loan delivery, servicing, quality control, and on-going program management.