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
- 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
*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.
| SELECT QM | CHOICE QM | SELECT 90 QM | ||||
|---|---|---|---|---|---|---|
| Loan Types | ◦ 10-30 year fixed rate ◦ 5/1, 7/1, 10/1 ARM fully amortizing | ◦ 10-30 year fixed rate ◦ 5/1, 7/1, 10/1 ARM fully amortizing | ◦ 20 ,25, 30 year fixed rate | |||
| Minimum FICO | 700-760 | 661-680 | 720-740 | |||
| Maximum LTV/CLTV Primary Purchase or R/T | ◦ 85% with no MI ◦ No Secondary Financing | ◦ 90% with no MI ◦ Secondary Financing Allowed | ◦ 90% with no MI ◦ No Secondary Financing | |||
| Minimum Loan Amount | ◦ $453,101 - 1 unit ◦ $1 over conforming: 2-4 units ◦ LTV over 80% - $1 over high balance | $1 over conforming / $1 over high balance | $1 over conforming / $1 over high balance | |||
| Maximum Loan Amount | $2,500,000 | $2,000,000 | $1,500,000 | |||
| First-Time Home Buyer | ◦ Max loan amount $1,000,000. ◦ $1,500,000 allowed in CA, CT, NJ, NY with additional restrictions | ◦ Max loan amount $1,000,000. ◦ $1,500,000 allowed in CA, CT, NJ, NY with additional restrictions | ◦ Max loan amount $1,000,000 ◦ $1,500,000 allowed in CA, CT, NJ, NY ◦ 740 FICO score required | |||
| Mortgage Lates | No lates allowed - 24 months | ◦ 1X30 - 12 months or 2X30 - 24 months ◦ Lates must not be in mostrecent 3 months | No lates allowed - 24 months | |||
| Credit Events: Foreclosures, Short Sale, Deed-in-Lieu, NOD | 7 year seasoning | 4 year seasoningwith additional restrictions | Not Allowed | |||
| # of Financed Properties Allowed | 4 | 10 | 2 | |||
| Max DTI | ◦ 43% Fixed and ARM ◦ 36% for LTVs >80% | ◦ 43% Fixed and ARM ◦ 38% for LTVs >80% | 43% | |||
| Non-Warrantable Condos | Not Allowed | Allowed | Not Allowed | |||
| Non-Occupant Co-Borrowers | Not Allowed | Allowed | Not Allowed |