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Summary of Benefits
- Superior competitive execution
- Economic value for qualifying loans
- Similar processing to GNMA
- Ability to deliver closed loans
- Electronic access through the eMPF® website
Under the MPF Government product,
the risks associated with financing loans insured or
guaranteed by government agencies (government loans)
are shared between the Federal Home Loan
Bank (FHLB) and members to maximize comparative advantages.
With MPF Government,
members market to borrowers, obtain insurance, or guarantee
and service fixed-rate residential government loans. Members may also take advantage of our servicing released option for FHA, VA, and RHS Section 502 loans through Colonial Savings, F.A.
With the MPF Government product, the
member is responsible for, and bears the risk of,
unreimbursed servicing expenses (which is comparable
to GNMA servicing requirements). A
recent HUD audit may be required
for member participation in the MPF Government product.
Because of the cooperative nature of the FHLB system,
the FHLB is able to offer competitive pricing to our
members for government loans. The FHLB manages the
liquidity, interest rate, and prepayment risks of the
loans. Members have the option to retain servicing and bear the risk of unreimbursed
servicing expenses (comparable to GNMA servicing requirements). Members can also sell the servicing to Colonial Savings and receive a competitive SRP. The combined effects of competitive pricing, member servicing expertise, and an attractive SRP structure distinguish the MPF Government product from other options available in the marketplace today.
For depository institutions, there is no leverage capital or risk-based capital requirement for loans sold under the MPF Government product.
* The FHLB is not providing accounting or legal advice with respect to the accounting treatment of MPF® program assets and liabilities. The participating member is expected to consult with its own accountants and attorneys for advice on this matter.
| FEATURES
OF MPF GOVERNMENT |
| Government plan types |
All FHA/VA fixed rate mortgage types, HUD Section 184 and RHS Section 502 |
| Term |
Up to 30 years fully amortizing |
| FICO score |
620 minimum |
| Loan Limits |
Up to applicable agency loan limits
(not to exceed MPF conventional loan limits) |
| Occupancy |
Owner occupied (1-4 units) |
| Underwriting |
Follow applicable agency underwriting
guidelines (AU decisions
as permitted by FHA) |
| Remittance |
Scheduled/Scheduled, Actual/Actual,
and Actual/Actual Single Remittance |
| Commitment delivery |
3, 10, 20, 30, and 45 business days |
| Pricing |
Premium and discount pricing available |
| Master commitment size |
$5 million minimum |
| Servicing options |
May retain or sell servicing to Colonial Savings, F.A. |
| SRP payment |
Paid by Colonial Savings, F.A., for Servicing Released |
| Servicing fee |
44 bps for Servicing Retained |
Who should take advantage of
this product?
An institution that is approved to originate
and service government loans, values the income derived
from originating and servicing government loans, and
is a member of the Federal Home Loan Bank System.
Members who are interested in MPF Government loans
will value the superior secondary market execution
along with the operational ease of our delivery system.
"MPF," "Mortgage Partnership Finance," "eMPF," and "MPF Xtra" are registered trademarks of the Federal Home Loan Bank of Chicago.
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