GOVERNMENT LOANS

MPF Government MBS

MPF Government MBS is an MPF Program government loan product whereby the Federal Home Loan Bank of Chicago purchases government loans from eligible MPF Program participants. The purchased loans will be aggregated and pooled into securities guaranteed by the Government National Mortgage Association (Ginnie Mae).

Product Details

The loan programs that can be sold under the MPF Government product include:

  • FHA Low down payment options
  • VA Financing and down payment flexibility for military veterans
  • RHS Section 502 Flexible financing for borrowers in rural and agricultural areas

Use MPF Government MBS if:

  • You are looking for a competitively-priced government loan investor
  • You are approved by the applicable government agency to originate and service loans
  • You want a variety of mortgage loan options to meet the needs of your customers
  • You have experience servicing with scheduled/scheduled remittance

    How it Works

    The Mortgage Partnership Finance® Program offers you competitive government mortgage products and pricing. While retaining servicing, you'll report and remit payments on a scheduled/scheduled basis.

    A master commitment specifically for MPF Government MBS is required in order to participate in this product. You would underwrite loans in accordance with applicable government agency guidelines. Our competitive pricing and your servicing expertise, allows you to offer your customers access to the best mortgage products in the marketplace today.

     

    Benefits

    • Cash execution – securities pricing
    • Same-day loan delivery and funding
    • Depository institutions have no leverage capital or risk-based capital requirements for loans sold under the MPF Government MBS product*
    • Minimal overlays to government agency guidelines
    • Delegated Underwriting; DU and LPA maybe used to assist in making the underwriting decision

    *The FHLBanks do not provide accounting or legal advice with respect to the accounting treatment of MPF Program assets and liabilities. The participating member is expected to consult with its own accountants and attorneys on this matter.

    Remittance Options

    Scheduled/Scheduled Remittance features a competitive up-front price and an investor reporting concept similar to agency scheduled/scheduled. With the scheduled/scheduled option, scheduled monthly principal and interest is advanced through liquidation and a full month of interest for payoffs and curtailments is paid. Servicers will find this option attractive if they value the competitive up-front price and if they have experience utilizing this remittance type.

    Characteristics
    • 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.
    Requirements
    • Electronic investor-reporting (using either an Excel or ASCII file)
    • Access to the MPF Master Servicer's secure website, ServicerConnect®
    OTHER PRODUCTS

    MPF® Government

    The MPF Government product allows you to sell fixed-rate mortgage loans insured or guaranteed by government agencies to your local Federal Home Loan Bank (FHLBank). Loan programs include FHA, VA, RHS Section 502, and HUD Section 184. You can retain loan servicing or take a servicing-released option.
      View MBS
    OTHER PRODUCTS

    Conventional / Conforming Loans

    MPF Program offers conventional conforming loans with flexible remittance options to help manage liquidity and risk.
      View Loans

    Explore More Resources

    Access resources, including guides, articles, and announcements, to stay informed about the MPF® Program.

    MPF Guides

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    Knowledge Articles

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    Participate in the MPF Program

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