MPF Products

Work with us to originate and sell your jumbo loans through our partnership with Redwood Residential Acquisition Corporation (Redwood Trust), a real estate investment trust located in Mill Valley, CA. We bring you access to private capital and a leading jumbo investor.

MPF Direct allows you to:

  • Offer competitive jumbo residential mortgage loans to your borrowers
  • Sell the servicing rights
  • Maintain control of the underwriting process
  • Continue the ability to cultivate and/or maintain relationships with your customers
  • Receive attractive all-in pricing (asset price + servicing-released premium); and
  • Transfer the interest-rate, prepayment and credit risks of the jumbo loans to an investor

With no retained credit risk on loans sold under the MPF Direct product structure, PFIs have no risk-based capital or credit risk collateral requirements.*

Features for all offerings:

  • Maximum LTV: 90%
  • No private mortgage insurance required
  • Loan Limits: Up to $2.5 million; cash-out refinances up to $750,000
  • Loan Types: Conventional, fully amortized fixed rate and 5/1, 7/1, 10/1 Hybrid ARMs
  • Occupancy: Owner-occupied, second homes, and non-owner occupied
  • Property Type: 1 to 4 unit owner occupied; 1 unit second home; 1 to 4 unit investment properties; condominiums (warrantable and non-warrantable); co-ops; PUDs, condotels
  • Delivery Commitment: Best Efforts
  • Servicing-Released only

Features for Non-QM offerings:

  • Debt-to-Income over 43% up to 49.99%
  • Asset Depletion 3% Rate of Return over the term of the loan
  • Departing Residence payment excluded from Debt-to-Income ratio
  • Investment Purchase Transactions using rental income without a lease
  • Projected Income outside of Appendix Q
  • Gaps of Employment outside of Appendix Q on an exception basis
MPF Direct - Loss Structure
MPF Direct - Loss Structure
*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.