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How can my institution participate
in Mortgage Partnership Finance (MPF)?
Contact the
MPF staff at mpf@fhlbboston.com
or 1-888-675-0556, or your relationship manager at 1-888-595-9733.
They will guide you through the application to become a participating
financial institution (PFI).
Do I need secondary-market experience
to participate in MPF?
Combining the retail expertise of community lenders with the wholesale
advantages of a Federal Home Loan Bank, the MPF program creates a unique partnership
for a more efficient method of financing mortgage loans. Some level of
secondary-market experience is helpful but not mandatory. Approved PFIs participate
in a one-day Implementation Training Session before they can sell loans through
the MPF program.
I currently sell to Fannie Mae,
Freddie Mac, or Ginnie Mae. Do I need to do anything different
to my processes to sell loans through MPF?
Very little, but there are some minor differences
between the MPF program and other secondary-market agencies.
These differences relate to the credit-enhancement process,
which is discussed in the descriptions of each product offered
through the MPF
program. Currently, the Federal Home Loan Bank of Boston
(the Bank) accepts closed loan sales. The MPF program has electronic
capabilities for sending and receiving data and reports as
well as direct deposits or debits of funds to your account.
What are the maximum loan amounts
allowed for sale through MPF?
The maximum loan amounts allowed for sale through
MPF correspond to the conforming loan limits established by
Fannie Mae and Freddie Mac. These limits are subject to change
each year.
What is the minimum master commitment
allowed?
The minimum master commitment can be as little as $5 million
or as much as $100 million, depending on which MPF option
you choose. Please consult the Original
MPF, Original
MPF for FHA/VA Loans, MPF
125, and MPF
Plus sections for specific minimum master commitments.
How long do I have to meet the master
commitment?
You have six months from execution of the master commitment.
Each master commitment can be extended for another six months.
How do I remit payments on serviced
loans?
Depending on which MPF product you have selected and the
size of your master commitment, you can either remit collected
payments on a scheduled/scheduled, actual/actual, or actual/actual
single remittance basis. Please consult the Original
MPF, Original
MPF for FHA/VA Loans, MPF
125, and MPF
Plus sections for specifics. Or contact the MPF
staff at mpf@fhlbboston.com
or 1-888-675-0556, or your relationship
manager at 1-888-595-8733.
How do I underwrite loans for sale
through MPF?
Because you share in the credit risk with the Bank,
you have ultimate control and decision-making authority over
the loans you originate. For standardization purposes, the
Bank asks members to follow MPF Origination
Guide
underwriting guidelines. However, the Bank will also accept
credit decisions from any Bank-approved automated underwriting
system currently in the marketplace.
Do I need a quality-control policy
in place? If so, can I outsource my quality-control function?
Yes, a PFI must maintain a quality-control program for home
mortgages it originates and services under the MPF program.
The quality-control system must ensure that the mortgages
conform to the MPF program's policies; are of a quality acceptable
to the Bank and other institutional investors; and comply
with insurer and guarantor requirements and meet specific
guidelines of the MPF program.
A PFI is permitted to utilize third-party quality-control
services for all or a portion of its quality-control program.
A PFI using such services must:
- Determine that the services performed comply with the
MPF program's requirements; and
- Oversee and evaluate the performance of the third-party
quality-control provider on a regular basis.
What is the eMPF Web site?
The eMPF web site, www.fhlb-mpf.com, is a secure transactional
web site that allows PFIs to obtain credit-enhancement
determinations (called loan presentment) to execute delivery commitments and deliver loans online (loan funding).
What benefits can I realize through
the eMPF web site?
- Current pricing schedules are available for viewing or
downloading. A scrolling banner informs users about time
limits for pricing schedules and other time-critical events.
- Execute delivery commitments up to $5 million dollars. View your price and lock it in without delay, thereby reducing exposure to market movement and eliminating additional steps.
- By submitting loan files electronically, users can determine
if their loans are eligible for delivery and obtain a credit-enhancement
determination instantaneously either via batch processing
or on a loan-level basis. Both conventional and government
loans can be submitted online, although credit enhancements are not determined for government loans.
- The price feature allows users to view the credit enhancement,
purchased loan balance, interim or accrued interest, agent
fee or premium/discount, and net funding amount for each
loan submitted in a batch or on a loan-level basis.
- Users can fund loans previously evaluated for credit
enhancement through the eMPF web site, via batch processing
or on a loan-level basis.
- Users can access several types of reports, including batch
reports, master commitment reports, the new loans booked
report, and the pool detail report.
How can I obtain access to the eMPF web
site?
The process for obtaining access to the eMPF web site begins once your institution is approved as a PFI in the MPF program. Once approved, you submit the names of the individuals to be authorized for access to the web site and indicate the authorization delegated for each individual. User IDs and passwords will be assigned.
What if I have changes in my organization?
For subsequent changes to an individual's delegated authority or to add a new individual for access to the transactional side of the eMPF web site, a Delegation of Authority — Supplemental form (Origination Guide Exhibit M) may be completed and submitted to FHLB Boston.
Is eMPF access secure?
The eMPF web site utilizes the appropriate level of security and current firewall techniques to keep your information safeguarded. A user ID and complex password are used for added security.
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