Partnership Provides MPF Program Pricing to Participating Financial Institutions at No Additional Cost
IRVINE, Calif. - LoanScorecardTM, a leading provider of automated underwriting and compliance solutions, announced today that the Mortgage Partnership Finance® (MPF) Program of the Federal Home Loan Bank System has implemented LoanScorecard’s Portfolio Producer™ product and pricing engine (PPE) and distribution solution. The implementation enables the MPF Program to provide its products and pricing to Participating Financial Institutions (PFIs) at no additional cost.
The Federal Home Loan Banks (FHLBanks) are member-owned cooperatives that provide funding solutions and liquidity to over 7,000 members that support mortgage lending, economic development, and affordable housing in the communities they serve. Members include community and commercial banks, credit unions, insurance companies, thrifts, and community development financial institutions in all 50 states, U.S. possessions, and territories.
With Portfolio Producer, PFIs can share loan file data with their FHLBank via their loan origination system (LOS). The FHLBank uses that data to determine and distribute real-time loan scenario-specific products and pricing, as well as provide applicable loan-level price adjustments (LLPAs) based on loan characteristics, delivery commitment, and remittance options—all without having to leave their LOS. Selected product, price, and LLPAs are then written back to the loan file.
“We’re pleased to partner with LoanScorecard to provide our PFIs complimentary access to a pricing solution already within their LOS,” said Chuck Vaughn, Vice President, Mortgage Relationship Manager at FHLBank Des Moines. “Using Portfolio Producer, instead of manually pricing loans, will help our PFIs not only become more efficient and more productive, but also better serve their customers.”
“Paying for access to a product and pricing engine each month can be costly, particularly for PFIs that only manufacture a few loans a month,” Ben Wu, Executive Director at LoanScorecard. “The partnership between LoanScorecard and the FHLBanks provides PFIs access to a PPE at no additional cost, allowing them to determine product eligibility and pricing at the point of sale for delivery to the FHLBanks—quickly and accurately.”
LoanScorecard™ is a leading provider of automated underwriting and loan pricing solutions designed to meet today's regulatory challenges and capitalize on today’s market opportunities. The company’s Portfolio Underwriter™ can be tailored to capture a lender’s specific credit policy and render underwriting findings that demonstrate a consistent loan manufacturing process to auditors and investors. Portfolio Producer™ electronically distributes wholesale and investor products and pricing to third-party originators (TPOs), providing TPOs with a real-time, interactive tool to determine borrower fit and price for non-agency programs, and enabling them to submit qualified loans to wholesalers and investors with confidence. Additionally, as the industry's first QM engine, LoanScorecard helps institutions address CFPB regulations through its QM Findings™, the industry's first qualified mortgage (QM) engine which has rendered more than 5 million QM findings reports to-date. For more information, visit loanscorecard.com or call 800-617-0892.
About the MPF Program
The MPF Program allows participating members of the Federal Home Loan Bank System to sell fixed-rate loans into the secondary mortgage market. To participate in the MPF Program, a financial institution must be a member of a Federal Home Loan Bank that offers the MPF Program. Currently, the Federal Home Loan Banks of Atlanta, Boston, Chicago, Dallas, Des Moines, New York, Pittsburgh, Topeka, and San Francisco purchase loans from participating members through the MPF Program. To learn more about the MPF Program, visit its website, www.fhlbmpf.com. “Mortgage Partnership Finance” and “MPF” are registered trademarks of the Federal Home Loan Bank of Chicago. The “MPF Mortgage Partnership Finance” logo is a trademark of the Federal Home Loan Bank of Chicago.