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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 along with a USAP 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
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," are registered trademarks and "MPF Xtra" is a trademark of the Federal Home Loan Bank of Chicago.