MPF Original allows you to share the credit risk associated with home mortgage finance with your Federal Home Loan Bank. MPF Original offers you the ability to originate, sell, and service fixed-rate, residential mortgage loans and receive a credit enhancement (CE) fee for sharing the credit risk. Your FHLBank manages the liquidity, interest rate, and prepayment risks of the loans while you manage the credit risk of the loans. The credit risk sharing feature of MPF Original allocates future loan losses, if any, after borrower equity and private mortgage insurance are depleted between the FHLBank and you.

Features

  • CE Fees: 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

  • Competitive execution
  • Credit enhancement fee income paid monthly, if applicable
  • Economic reward for quality loans
  • Same-day delivery and funding
  • Servicing-released options available
  • No loan-level price adjustments
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 Participating Financial Institutions transfer funds to their FHLBank non-interest bearing custodial deposit account whenever the collected principal and interest net of servicing fees exceeds $2,500. PFIs 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 – Falls on the last day of calendar month
  • Investor Reporting – Reports distributed by the fifth business day following the cut-off
  • Remittance Frequency – When 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
  • Access to the eMPF® website
Actual/Actual Single Remittance offers an alternative option to remit MPF 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. Members 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 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
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. Members will find this option attractive if they value the competitive up-front price and if they have experience utilizing this remittance type and sophisticated investor-reporting process.
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 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 allows you to share the risks associated with home mortgage finance with your Federal Home Loan Bank (FHLBank). MPF 125 offers you the ability to originate, sell, and service fixed-rate, conventional residential mortgage loans and receive a credit enhancement (CE) fee for sharing the credit risk. Your FHLBank manages the liquidity, interest rate, and prepayment risks while you manage the credit risk of the loans. The credit risk sharing sharing feature of MPF 125 allocates future loan losses, after borrower equity and private mortgage insurance are depleted, between the FHLBank and you.

Features

  • CE Fees: Up to 10 basis points (0.10%) annualized on the outstanding Master Commitment balances, paid monthly. The CE fee 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

  • Competitive execution
  • Economic reward for quality loans
  • Same-day delivery and funding
  • Servicing-released options available
  • No loan-level price adjustments
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 Participating Financial Institutions transfer funds to their FHLBank non-interest bearing custodial deposit account whenever the collected principal and interest net of servicing fees exceeds $2,500. PFIs 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 – Falls on the last day of calendar month
  • Investor Reporting – Reports distributed by the fifth business day following the cut-off
  • Remittance Frequency – When 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
  • Access to the eMPF® website
Actual/Actual Single Remittance offers an alternative option to remit MPF 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. Members 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 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
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. Members will find this option attractive if they value the competitive up-front price and if they have experience utilizing this remittance type and sophisticated investor-reporting process.
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 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 allows you to share the risks associated with home mortgage finance with your Federal Home Loan Bank (FHLBank). MPF 35 offers you the ability to originate, sell and service fixed-rate, conventional residential mortgage loans and receive a credit enhancement fee for sharing in the credit risk. Your FHLBank manages the liquidity, interest rate, and prepayment risks of the loans while you manage the credit risk of the loans. The credit risk sharing feature of MPF 35 allocates any future loan losses, after borrower equity and private mortgage insurance are depleted, between the FHLBank and you.

Features

  • Credit Enhancement Fees: A mutually agreed upon amount ranging from 7 basis points (0.07%) up to 14 basis points (0.14%) annualized on the outstanding Master Commitment balances made up of two components:
    • A fixed rate portion 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

  • Competitive execution
  • Economic reward for quality loans
  • Same-day delivery and funding
  • Servicing-released options available
  • No loan-level price adjustments
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 Participating Financial Institutions transfer funds to their FHLBank non-interest bearing custodial deposit account whenever the collected principal and interest net of servicing fees exceeds $2,500. PFIs 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 – Falls on the last day of calendar month
  • Investor Reporting – Reports distributed by the fifth business day following the cut-off
  • Remittance Frequency – When 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
  • Access to the eMPF® website
Actual/Actual Single Remittance offers an alternative option to remit MPF 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. Members 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 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
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. Members will find this option attractive if they value the competitive up-front price and if they have experience utilizing this remittance type and sophisticated investor-reporting process.
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 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

Sell us your fixed-rate, conforming loans and we will resell those loans through our partnership arrangement to Fannie Mae. When taking advantage of the MPF Xtra product, you have the flexibility to:

  • 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.

No shared credit risk means there are no collateral or risk-based capital requirements.*

Features

  • LTV ratios up to 97%
  • Owner-occupied only
  • HomeReady® purchase transactions for first-time home buyers
  • Transactions for first-time home buyers
  • Limited cash-out refinances and cash-out refinances
  • DU® Validation Services (Income, Employment and Asset Validation) and option to use a Property Inspection Waiver for certain refinance transactions 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 household income is at or below 80% of the HUD Area Median Income (AMI) limits for purchase transactions. 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 a 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. Participating Financial Institutions (PFIs) may log into the eMPF Website to obtain the MPF Xtra 3D Guide, Frequently Asked Questions (FAQs) and HUD Area Median Income (AMI) Limits located in the Product Information section under the Resources header.

Best Efforts Delivery Commitment

Best Efforts Delivery Commitments are available under the MPF Xtra product. 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 seconadry market
    • Retention of the servicing rights and servicing fee income, preserving the ability to cultivate and maintain relationships with customers 
    • No collateral or risk-based capital requirements*

Who Should Take Advantage of this Option?

MPF Xtra Best Efforts Delivery Commitments are for any PFI 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, the PFI 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. PFIs gain greater access to secondary market liquidity and minimize the associated interest rate risk due to market changes.

PFIs will 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 Participating Financial Institutions 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. PFIs 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 the PFI 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 the P&I Custodial Account held with the MPF Provider 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