MPF Government Product

 
 

The MPF Government product allows Participating Financial Institutions to sell fixed-rate mortgage loans that are insured or guaranteed by government agencies to their local Federal Home Loan Bank. The loan programs that can be sold under the MPF Government product include:

FHA – low down payment options for borrowers

VA – financing and down payment flexibility for military veterans

RD Section 502 – flexible financing for borrowers in rural and agricultural areas

HUD Section 184 – affordable and flexible financing for borrowers on Indian-Native American land

The MPF Government product offers PFIs the flexibility to retain the servicing of loans sold to their FHLBanks or take advantage of our servicing released option. When choosing the servicing released option, a PFI sells the servicing to an approved MPF servicing aggregator and receives a competitive servicing released premium.

 

The MPF Government Product Benefits PFIs that:

  • Want a competitively priced government loan investor
  • Want to fund loans more quickly and easily
  • Are approved by the applicable government agency to originate and service loans
  • Want a variety of mortgage loan options to meet the needs of their customers
  • Appreciate having maximum flexibility in choosing their servicing and remittance options

  

How It Works

The FHLBanks are able to offer PFIs competitive mortgage products and pricing through the MPF Program as a benefit of membership. When you sell government loans to your FHLBank, the FHLBank manages the liquidity, interest rate, and prepayment risks of the loans. As a PFI, you can choose to retain servicing, which includes potential unreimbursed servicing expenses, or sell the servicing to an approved MPF servicing aggregator and receive a servicing released premium. By combining our competitive pricing and your servicing expertise (or the servicing released premium option), you are able to offer your customers access to the best mortgage products in the marketplace today.

 

Benefits

  • Competitive servicing retained execution
  • Excellent servicing released execution
  • All-In Execution = Asset Price + Servicing Released Premium
  • Same-day loan delivery and funding
  • Depository institutions have no risk-based capital requirements for loans sold under the MPF Government product