Product & Pricing Engines
Product and Pricing Engines (PPE) are tools used to enhance your lending strategy and operations. Utilizing a PPE can assist you with product eligibility information and pricing to best meet the needs of our customer and improve profitability. Please consider these additional pricing factors when setting us up as an investor.
Credit Enhancement Fee Income:
Are you including credit enhancement (CE) fees into your best execution analysis? While comparing best execution pricing between the MPF credit enhanced products and other investors, remember you earn CE fee income for sharing in the credit risk associated with the residential mortgage loans sold to the Federal Home Loan Bank (FHLBank). This fee income is not reflected in the price displayed in your PPE and should be considered in determining your best execution. Work with your FHLBank to determine the value of your CE fee and with your PPE to add this positive adjustment to the pricing for your MPF credit enhanced product.
Servicing Released Premiums:
Have you discussed your servicing released options with your PPE? The servicing released premiums (SRP) for your MPF servicing released products are priced using SRP Grids generated directly from your servicing buyer. Although the grids are provided to your PPE by the MPF Program or the servicing buyer directly, it is your responsibility to ensure your PPE has properly coded and/or loaded the grids.
Are you aware that the pricing displayed in your PPE for all MPF Products represents indicative pricing only? The pricing and best execution for MPF Products are not live prices or executable in your PPE. You need to use eMPF® in order to determine the executable price and complete your delivery commitment.
MPF Products and Pricing are currently available through the following providers:
- Compass Analytics
- Ellie Mae®
- Mortgage Capital Trading, Inc.
- Chris Anderson
- Optimal Blue