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Summary of Benefits

• Superior 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.

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 while the member bears the risk of unreimbursed servicing expenses. The combined effect of competitive pricing and member servicing expertise distinguishes the MPF Government product as an alternative to what is available in the marketplace today.

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 fee	44 bps

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.


"Mortgage Partnership Finance" and "MPF" are registered trademarks of the Federal Home Loan Bank of Chicago.