The MPF® Government and MPF Government MBS products give Participating Financial Institutions the option to sell fixed-rate mortgage loans that are insured or guaranteed by government agencies and programs, including FHA, VA, HUD Section 184, and RHS Section 502.
| Features | MPF Government | MPF Government MBS | |
|---|---|---|---|
| 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 | Owner-occupied only | Owner-occupied only | |
| Investment property | |||
| Mortgage insurance coverage required | • | • | |
| Fannie Mae Desktop Underwriter (DU) access included | |||
| Maximum LTV (%) | Per applicable government guidelines | Per applicable government guidelines | |
| Servicing | Servicing options: released or retained | • | Retained only |
| Remittance options: A/A, S/R, or S/S | • | ||
| Remittance options: A/A only | |||
| Remittance options: S/S only | • | ||
| Servicing fee income (bps) | 44 | 19-56.5 | |
| 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 | • | • | |
| Structure | Credit enhanced: FHLBank Chicago and PFI share credit risk | ||
| First Loss Account (bps) | |||
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
To learn more about the MPF Program, contact your Sales Director or MPF Sales Support at MPFSales@fhlbc.com.