Product Enhancements Give PFIs More Options and Versatility When Selling Jumbo Loans

The MPF Direct product now has even more to offer PFIs who want to sell jumbo residential mortgages into the secondary market. As of August 2016, MPF Direct has expanded to include two loan eligibility options—MPF Direct SelectQM and MPF Direct ChoiceQM—aligning the product with the investor’s full range of offerings for QM jumbo mortgages.

More Flexibility for Jumbo Loans

While the process PFIs use to deliver loans under MPF Direct remains the same, the product expansion allows them to reach more customers and offer more options, providing a single solution for their jumbo borrower needs. Loan eligibility requirements have been expanded as follows:

• The maximum loan amount has been increased from $1.5 million to
  $2.5 million.
• Adjustable-rate mortgages are now eligible.
• The maximum loan-to-value ratio has been increased from 80% to 90% with no mortgage insurance.
• The borrower credit profile has been expanded to include lower reserve requirements, lower minimum FICO scores, and allowance for late mortgage payments and credit events.
• More property types are now eligible, including non-warrantable condominiums and condotels.
• Loan exceptions will continue to be considered on a case-by-case basis. Common exceptions include excess acreage and unique properties.

The MPF Direct product allows members of the six participating Federal Home Loan Banks—Atlanta, Boston, Chicago, Des Moines, Pittsburgh, and San Francisco—to deliver jumbo mortgages through the MPF platform to a subsidiary of Redwood Trust. For more information on the MPF Direct product and the expanded eligibility options, contact your MPF Bank representative.