MPF Original provides you with the option to receive additional income by sharing in the credit risk with your Federal Home Loan Bank (FHLBank). Your FHLBank manages the liquidity, interest rate, and prepayment risks of the loans while you manage the credit risk of the loans. When a loss occurs, the credit risk sharing feature of MPF Original allocates those losses after borrower equity and private mortgage insurance are depleted.

 Features

  • Additional Income: You have a choice of either additional up-front income in the price or up to 10 basis points (0.10%) annualized on the outstanding Master Commitment balances, paid monthly
  • Remittance options: Actual/Actual, Actual/Actual Single Remittance, Scheduled/Scheduled
  • Servicing Fees: 25 basis points (0.25%) paid monthly

Benefits

  • No loan-level price adjustments
  • Competitive execution
  • Additional income
  • Economic reward for quality loans
  • Same-day delivery and funding
  • Servicing-released options available

 

MPF Original - Loss Structure
MPF Original - Loss Structure

Actual/Actual Remittance features an investor reporting and remittance option similar to agency actual/actual and a competitive up-front price. This option is structured so that Servicers transfer funds to their FHLBank non-interest bearing custodial deposit account whenever the collected principal and interest net of servicing fees exceeds $2,500. Servicers will find the actual/actual remittance option particularly attractive if they are knowledgeable in actual/actual investor reporting and they value the ease of operation.

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 distributed by the fifth business day following the cut-off
  • Remittance Frequency – Whenever collected P&I exceeds $2,500 net of servicing fees, and the account balance on the first business day of the month
Requirements
  • Non-interest bearing custodial P&I account maintained at the FHLBank
  • Electronic investor-reporting

 

Actual/Actual Single Remittance offers an alternative option to remit principal and interest. This option features a single monthly remittance with a simple investor reporting process. The single remittance option provides a significant float income benefit for all P&I payments received in an accounting cycle. This float value results from all collections received in a calendar month being remitted on the 18th of the following month. Servicers will find this program attractive if they value the float income, are new to investor reporting, or prefer a simple remitting process.
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 distributed by the fifth business day following the cut-off
  • Remittance Date – Date falls on the 18th of the month following the cut-off, or the prior business day if the 18th is not a business day
Requirements
  • Electronic investor-reporting

 

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 distributed by the fifth business day following the cut-off
  • Remittance Date – date falls on the 18th of the month following the cut-off, or the prior business day if the 18th is not a business day
Requirements
  • Non-interest bearing custodial P&I account maintained at the FHLBank
  • Electronic investor-reporting
  • Access to the eMPF® website

MPF 125 provides you with the option to receive additional income by sharing in the credit risk with your Federal Home Loan Bank (FHLBank). Your FHLBank manages the liquidity, interest rate, and prepayment risks while you manage the credit risk of the loans. When a loss occurs, the credit risk sharing feature of MPF 125 allocates those losses after borrower equity and private mortgage insurance are depleted.

Features

  • Additional Income: Up to 10 basis points (0.10%) annualized on the outstanding pool of loans balances, paid monthly. The income is performance-based, net of any losses.
  • Remittance options: Actual/Actual, Actual/Actual Single Remittance, Scheduled/Scheduled
  • Servicing Fees: 25 basis points (0.25%) paid monthly

Benefits

  • No loan-level price adjustments
  • Competitive execution
  • Additional income paid monthly
  • Economic reward for quality loans
  • Same-day delivery and funding
  • Servicing-released options available
MPF 125 - Loss Structure
MPF 125 - Loss Structure

Actual/Actual Remittance features an investor reporting and remittance option similar to agency actual/actual and a competitive up-front price. This option is structured so that Servicers transfer funds to their FHLBank non-interest bearing custodial deposit account whenever the collected principal and interest net of servicing fees exceeds $2,500. Servicers will find the actual/actual remittance option particularly attractive if they are knowledgeable in actual/actual investor reporting and they value the ease of operation.

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 distributed by the fifth business day following the cut-off
  • Remittance Frequency – Whenever collected P&I exceeds $2,500 net of servicing fees, and the account balance on the first business day of the month
Requirements
  • Non-interest bearing custodial P&I account maintained at the FHLBank
  • Electronic investor-reporting

 

Actual/Actual Single Remittance offers an alternative option to remit principal and interest. This option features a single monthly remittance with a simple investor reporting process. The single remittance option provides a significant float income benefit for all P&I payments received in an accounting cycle. This float value results from all collections received in a calendar month being remitted on the 18th of the following month. Servicers will find this program attractive if they value the float income, are new to investor reporting, or prefer a simple remitting process.
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 distributed by the fifth business day following the cut-off
  • Remittance Date – Date falls on the 18th of the month following the cut-off, or the prior business day if the 18th is not a business day
Requirements
  • Electronic investor-reporting

 

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 distributed by the fifth business day following the cut-off
  • Remittance Date – date falls on the 18th of the month following the cut-off, or the prior business day if the 18th is not a business day
Requirements
  • Non-interest bearing custodial P&I account maintained at the FHLBank
  • Electronic investor-reporting
  • Access to the eMPF® website

MPF 35 provides you with the option to receive additional income by sharing in the credit risk with your Federal Home Loan Bank (FHLBank). Your FHLBank manages the liquidity, interest rate, and prepayment risks of the loans while you manage the credit risk of the loans. When a loss occurs, the credit risk sharing feature of MPF 35 allocates those losses after borrower equity and private mortgage insurance are depleted.

Features

  • Additional Income: A mutually agreed upon amount ranging from 7 basis points (0.07%) up to 14 basis points (0.14%) annualized on the pool of loan balances made up of two components:
    • A fixed rate portion, if applicable, paid monthly beginning the month after delivery; and
    • A performance-based portion paid monthly beginning the 13th month after delivery after deducting any losses (up to the amount of the First Loss Account)
  • Remittance Options: Actual/Actual, Actual/Actual Single Remittance, and Scheduled/Scheduled
  • Servicing Fees: 25 basis points (0.25%) paid monthly

Benefits

  • No loan-level price adjustments
  • Additional income, paid monthly
  • Competitive execution
  • Economic reward for quality loans
  • Same-day delivery and funding
  • Servicing-released options available
MPF 35 - Loss Structure
MPF 35 - Loss Structure

Actual/Actual Remittance features an investor reporting and remittance option similar to agency actual/actual and a competitive up-front price. This option is structured so that Servicers transfer funds to their FHLBank non-interest bearing custodial deposit account whenever the collected principal and interest net of servicing fees exceeds $2,500. Servicers will find the actual/actual remittance option particularly attractive if they are knowledgeable in actual/actual investor reporting and they value the ease of operation.

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 distributed by the fifth business day following the cut-off
  • Remittance Frequency – Whenever collected P&I exceeds $2,500 net of servicing fees, and the account balance on the first business day of the month
Requirements
  • Non-interest bearing custodial P&I account maintained at the FHLBank
  • Electronic investor-reporting

 

Actual/Actual Single Remittance offers an alternative option to remit principal and interest. This option features a single monthly remittance with a simple investor reporting process. The single remittance option provides a significant float income benefit for all P&I payments received in an accounting cycle. This float value results from all collections received in a calendar month being remitted on the 18th of the following month. Servicers will find this program attractive if they value the float income, are new to investor reporting, or prefer a simple remitting process.
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 distributed by the fifth business day following the cut-off
  • Remittance Date – Date falls on the 18th of the month following the cut-off, or the prior business day if the 18th is not a business day
Requirements
  • Electronic investor-reporting

 

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 distributed by the fifth business day following the cut-off
  • Remittance Date – date falls on the 18th of the month following the cut-off, or the prior business day if the 18th is not a business day
Requirements
  • Non-interest bearing custodial P&I account maintained at the FHLBank
  • Electronic investor-reporting
  • Access to the eMPF® website

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. When taking advantage of the MPF Xtra product, you have the flexibility to:

  • Sell into the secondary market without the additional approval and fees
  • Retain the servicing rights, earn servicing fee income, and preserve the ability to cultivate and maintain relationships with customers, or
  • Sell the servicing rights and receive a servicing-released premium.

Features

  • LTV ratios up to 97%
  • Owner-occupied and secondary residences
  • HomeReady® purchase transactions for first-time home buyers
  • Limited cash-out refinances and cash-out refinances
  • DU® Validation Services (Income, Employment and Asset Validation) and Appraisal Waivers are available
  • Down payment assistance for qualified borrowers

Benefits

  • Competitive execution
  • Economic value for quality loans
  • Retention of borrower relationships
  • Access to Fannie Mae technology 
    • Desktop Underwriter (DU®) 
    • Collateral Underwriter (CU®) 
    • Day 1 Certainty

MPF Xtra 3D

MPF Xtra 3D is a feature under the MPF Xtra product which provides down payment and closing cost assistance for creditworthy borrowers whose income, used for qualifying purposes, is at or below 80% of the Area Median Income (AMI) limits for purchase transactions. For determining eligibility, the Participating Financial Institutions (PFI) must refer to the AMIs that Fannie Mae uses in Desktop Underwriter or on Fannie Mae’s website, and may not rely on other published versions (such as AMIs posted on huduser.org). MPF Xtra 3D reduces impediments to homeownership by:

  • Providing 3% Down Payment Assistance (DPA) based on the unpaid principal balance at time of loan purchase
  • Reducing borrower's mortgage payment through the elimination of mortgage insurance (MI)
  • Reducing closing costs by eliminating Loan Level Price Adjustments (LLPAs)

MPF Xtra 3D loans must be underwritten according to the Guides, the MPF Xtra Guide and the MPF Xtra 3D Guide. PFIs may log into the eMPF Website to obtain the MPF Xtra 3D Guide and training materials located in the Product Information section under the Resources header.

Best Efforts Delivery Commitment

Best Efforts Delivery Commitments are available under all of the MPF Xtra product offerings. Federal Home Loan Bank (FHLBank) PFIs are able to take advantage of the MPF Xtra product, which offers:

  • The transfer of interest-rate and prepayment risks as well as the credit risk of the associated loans to an investor 
    • Delivery Commitments under a Best Efforts option for individual loans, with no pair-off fees for non-delivery
    • The ability to originate fixed-rate residential mortgage loans and deliver those loans into the secondary market
    • Retention of the servicing rights and servicing fee income, preserving the ability to cultivate and maintain relationships with customers or sale of the servicing rights and receive a servicing released premium 
    • No collateral or risk-based capital requirements*

Who Should Take Advantage of this Option?

MPF Xtra Best Efforts Delivery Commitments are for any seller that is actively engaged in mortgage lending in its community, has a high regard for the value of customer relationships, and seeks to more effectively manage its origination pipeline. If the associated loan closes, you must deliver that loan under the Delivery Commitment; however, there is no pair-off fee assessed if the loan does not close and the Delivery Commitment expires. You gain greater access to secondary market liquidity and minimize the associated interest rate risk due to market changes.

You continue to have the option of manually underwriting the loans or obtain access to Fannie Mae's Desktop Underwriter (DU) taking advantage of state-of-the-art technology. Utilizing DU reduces a PFI's loan origination representations and warrants to the investor. PFIs may utilize DU Validation Services (income, employment, and asset validation) and property inspection waiver features.

Benefits

  • Receive a competitive execution with delivery flexibility
  • Enhance pipeline management tools
  • Reduce exposure to interest rate fluctuations
  • Realize economic value for quality loans

*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 for advice on this matter.

MPF Xtra - Loss Structure
MPF Xtra - Loss Structure

Actual/Actual Remittance features an investor reporting and remittance option similar to agency actual/actual and a competitive up-front price. This option is structured so that Servicers wire or ACH funds to their FHLBank non-interest bearing custodial account and deposit funds by 2:00 C.S.T the day following the receipt of principal and interest payment net of servicing fees. Servicers will find the actual/actual remittance option particularly attractive if they are knowledgeable in actual/actual investor reporting and they value the ease of operation, they value the up-front price benefit and they are knowledgeable in actual/actual investor reporting.

Characteristics
  • Remittance Amount – Actual P&I collections, less a servicing fee
  • Accounting Cut-Off Date – 21st of each month
  • Investor Reporting –Xtra allows you to choose one of the three different reporting options:
    1. Daily reporting
    2. Monthly with limited daily reporting
    3. Monthly reporting
  • Remittance Frequency – The Servicer must deposit all funds into their designated P&I Custodial Account by 2:00pm Central Standard Time the next Business Day following the Servicer’s receipt of the funds.

Requirements
  • Non-interest bearing custodial P&I account maintained at the FHLBank as well as establish both a P&I and T&I custodial accounts at their institution
  • Electronic investor-reporting- using either an excel file or ASCII file using a secure website
  • Access to the eMPF® website