Mortgage Partnership Finance® Program surpasses $1 billion in Credit Enhancement Income Paid to FHLBank Members

  • March 29, 2023
The Mortgage Partnership Finance® Program (MPF®) recently surpassed $1 billion in Credit Enhancement (CE) income paid to almost 1,600 Federal Home Loan Bank (FHLBank) member financial institutions. Through the MPF Traditional products, FHLBank members have the option to receive additional income for sharing in the credit risk of loans sold to their FHLBank.

The MPF Traditional products were developed over 25 years ago to provide FHLBank members a secondary mortgage market option for their conventional conforming loans. The MPF Traditional products allow FHLBank members to transfer interest rate and prepayment risks to the FHLBanks while retaining a portion of the credit risk on loans they originate and without any loan level pricing adjustments (LLPAs). The FHLBank compensates their members for the quality of mortgages sold by paying monthly CE income over the life of those loans.

“Our MPF Traditional products were created to support homeownership in the communities FHLBank members serve,” said John Stocchetti, Executive Vice President of the MPF Program. “Since 1997, the MPF Program has provided community lenders nationwide access to the secondary mortgage market with our unique credit risk-sharing structure which rewards them for selling high performing conventional conforming loans to their FHLBank.” 

FHLBank members and their customers have benefited from the MPF Program and their ability to earn CE income. “The MPF Program has helped provide valuable mortgage products to our customers. We have been able to help them purchase homes while earning additional income,” said Amy Halleran, Senior Vice President, County Bank. “Even though County Bank may be small, we never feel like a number, we feel like a valued partner.”

To learn more, visit:

Contact Us

Please direct all media inquiries to:

Casey Reidy 
Director, Communications

Heather Bockstruck
Assistant Director, Communications