MPF 35 Product



The MPF 35 product allows you to share the risks associated with home mortgage finance with your Federal Home Loan Bank (FHLBank). MPF 35 offers you, a Participating Financial Institution (PFI) the ​ability to originate, sell and service fixed-rate, conventional residential mortgage loans and receive a credit enhancement fee for your credit expertise. 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 equity and private mortgage insurance are depleted, between the PFI and its FHLBank.



  • Credit Enhancement Fees: A mutually agreed upon amount ranging from 7 basis points (0.07%) up to 12 basis points (0.12​%) 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



  • Competitive execution
  • Economic reward for quality loans
  • Same-day delivery and funding
  • Servicing released options available
  • No loan-level price adjustment