FHLBC - MPF in Focus

Product Update: MPF^® Direct

The Mortgage Partnership Finance® (MPF) Program continues to expand its product offerings. Now you can choose the MPF Direct product to sell jumbo loans to the secondary mortgage market. The loan limits are:

Residential Units	Contiguous States, Washington D.C., Puerto Rico	Alaska, Guam, Hawaii, U.S. Virgin Islands
One	$1,500,000	$1,928,571
Two	$1,500,000	$1,500,000

The MPF Direct product benefits PFIs that want to:

Offer competitive fixed-rate, jumbo residential mortgage loans to their borrowers without metropolitan statistical area (MSA) restrictions
Sell the servicing rights
Receive attractive all-in pricing (asset price + servicing-released premium)
Continue the ability to cultivate and/or maintain relationships with their customers and
Transfer the interest rate and credit risks of the jumbo loan to an investor.

With no retained credit risk on loans sold under the MPF Direct product structure, PFIs have no risk-based capital or credit risk collateral requirements.*

Features of the MPF Direct product are:

Maximum LTV: 80%
Loan Limits: Up to $1.5 million; limits are adjusted for high-cost areas
Occupancy: Owner-occupied and second homes
Property Type: 1 or 2 units
Delivery Commitment: Best Efforts
Remittance: Servicing Released only
Master Commitment Size: $10 million minimum

PFIs that want the advantages of the MPF Direct product must obtain specific approval through their MPF Bank.

*The FHLBanks do not provide 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 on this matter.

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FHLBC 200 East Randolph Drive Chicago, IL 60601 Phone: (877) 463-6673 www.fhlbmpf.com	New loan purchases available through the Federal Home Loan Banks of Atlanta, Boston, Chicago, Dallas, Des Moines, New York, Pittsburgh, San Francisco, and Topeka.
Copyright 2015, Mortgage Partnership Finance Program. “Mortgage Partnership Finance,” “MPF,” “MPF Xtra,” and “eMPF” are registered trademarks of the Federal Home Loan Bank of Chicago. The “MPF Mortgage Partnership Finance” logo is a trademark of the Federal Home Loan Bank of Chicago.

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