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.


FeaturesMPF OriginalMPF 125MPF 35MPF Xtra®
ExecutionCredit Enhancement Obligation: contingent liability of PFI 
Credit Enhancement Fee Income: 6–12 basis points paid to PFI 
Loan level/investor price adjustments   
UnderwritingLoan 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 (%)95959597
ServicingServicing 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)25252525
DeliveryMaster 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*
StructureCredit enhanced: FHLBank and PFI share credit risk 
First Loss Account (bps)4/annum10035 

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 MPF Sales Support at MPFSales@fhlbc.com.