Under the MPF® Original, MPF 125, MPF 35, and MPF Xtra® products, Participating Financial Institutions can originate and sell conventional fixed-rate residential mortgage loans, with the option to receive Credit Enhancement Fee income for sharing in the credit risk.


Features MPF Original MPF 125 MPF 35 MPF Xtra®
Execution Credit Enhancement Obligation: contingent liability of PFI  
Credit Enhancement Fee Income: 6–12 basis points paid to PFI  
Loan level/investor price adjustments      
Underwriting Loan terms: fully amortizing, up to 30-year fixed rate
5/1, 7/1, 10/1 Adjustable Rate Mortgages (ARMs)        
Occupancy: owner-occupied/second home
Investment property        
Mortgage insurance coverage required
Fannie Mae Desktop Underwriter (DU) access included      
Maximum LTV (%) 95 95 95 97
Servicing Servicing options: released or retained
Remittance options: A/A, S/R, or S/S  
Remittance options: A/A Only      
Remittance options: S/S Only        
Servicing fee income (bps) 25 25 25 25
Delivery Master commitment: required; $5 million minimum
Delivery commitments: mandatory
Master commitment: required; $5 million minimum
Delivery commitments: best efforts
Same-day loan delivery and funding  Next day*
Structure Credit enhanced: FHLBank and PFI share credit risk  
First Loss Account (bps) 4/annum 100 35  

Product terms subject to change; contact your Sales Director for the most current product information.

PFI = Participating Financial Institution
A/A = Actual/Actual
S/R = A/A Single Remittance
S/S = Scheduled/Scheduled

*Generally next day for mandatory delivery; two business days for best efforts

To learn more about the MPF Program, contact your Sales Director or Membership Coordinator at MPFSales@fhlbc.com.