| Best Efforts Option: Manage Your Origination Pipeline Efficiently |
 The MPF Xtra Product’s Best Efforts Delivery Commitment option provides PFIs with more flexibility when selling fixed-rate conforming loans into the secondary market. A PFI can enter into an agreement to sell a mortgage loan through the MPF Xtra product, but, if the loan doesn’t fund despite the PFI’s best efforts, there is no pair-off fee and the delivery commitment expires.
The benefits of using MPF Xtra’s Best Efforts option include:
• Manage your origination pipeline with efficiency
• Enhance your ability to offer fixed-rate residential mortgage loans to borrowers and deliver those loans into the secondary market
• Retain the servicing rights and grow servicing fee income, by preserving and cultivating relationships with your customers
• Transfer the interest-rate and prepayment risks as well as the credit risk of the associated loans to an investor
PFIs will continue to have the option of manually underwriting the loans or obtain access to Fannie Mae’s Desktop Underwriter® (DU®) taking advantage of state-of-the-art technology. Utilizing DU reduces a PFI’s loan origination representations and warrants to the investor. |
|
