Under the MPF® Original, MPF 125, MPF 35, and MPF Xtra® products, Participating Financial Institutions can originate and sell conventional fixed-rate residential mortgage loans, with the option to receive Credit Enhancement Fee income for sharing in the credit risk.
| Features | MPF Original | MPF 125 | MPF 35 | MPF Xtra® | |
|---|---|---|---|---|---|
| Execution | Credit Enhancement Obligation: contingent liability of PFI | • | • | • | |
| Credit Enhancement Fee Income: 6–12 basis points paid to PFI | • | • | • | ||
| Loan level/investor price adjustments | • | ||||
| Underwriting | Loan terms: fully amortizing, up to 30-year fixed rate | • | • | • | • |
| 5/1, 7/1, 10/1 Adjustable Rate Mortgages (ARMs) | |||||
| Occupancy: owner-occupied/second home | • | • | • | • | |
| Investment property | • | ||||
| Mortgage insurance coverage required | • | • | • | • | |
| Fannie Mae Desktop Underwriter (DU) access included | • | ||||
| Maximum LTV (%) | 95 | 95 | 95 | 97 | |
| Servicing | Servicing options: released or retained | • | • | • | • |
| Remittance options: A/A, S/R, or S/S | • | • | • | ||
| Remittance options: A/A Only | • | ||||
| Remittance options: S/S Only | |||||
| Servicing fee income (bps) | 25 | 25 | 25 | 25 | |
| Delivery | Master commitment: required; $5 million minimum Delivery commitments: mandatory | • | • | • | • |
| Master commitment: required; $5 million minimum Delivery commitments: best efforts | • | ||||
| Same-day loan delivery and funding | • | • | • | Next day* | |
| Structure | Credit enhanced: FHLBank and PFI share credit risk | • | • | • | |
| First Loss Account (bps) | 4/annum | 100 | 35 | ||
Product terms subject to change; contact your Sales Director for the most current product information.
PFI = Participating Financial Institution
A/A = Actual/Actual
S/R = A/A Single Remittance
S/S = Scheduled/Scheduled
*Generally next day for mandatory delivery; two business days for best efforts
To learn more about the MPF Program, contact your Sales Director or MPF Sales Support at MPFSales@fhlbc.com.