MPF 125 Product



The MPF 125 product allows a member to share the credit risk associated with home mortgage finance with its Federal Home Loan Bank. MPF 125 provides Participating Financial Institutions with the ability to originate, sell, and service fixed-rate, residential mortgage loans, and receive a Credit Enhancement Fee based on the performance of the loans. The FHLBank manages the liquidity, interest rate, and prepayment risks of the loans while the PFI manages the credit risk of the loans. The credit risk-sharing feature of MPF 125 allocates future loan losses, if any, between the PFI and its FHLBank after equity and private mortgage insurance are depleted. 


  • Remittance options: Actual/Actual, Actual/Actual Single Remittance, Scheduled/Scheduled
  • Credit Enhancement Fees: For taking on the CE Obligation, the PFI will receive up to 9 basis points annualized on​ the outstanding Master Commitment balances, paid monthly. This fee is performance-based, net of any realized losses.


  • Competitive execution
  • Economic reward for quality loans
  • Same-day delivery and funding
  • Servicing released options available
  • No secondary market fees