MPF® Program Description
Different member institutions require different types of structures for their secondary market sales. With this in mind, several MPF products have been developed to meet the different needs of our members. With these products, the member originates, closes, and then sells the loans to the HLB.
| ORIGINAL MPF® | MPF® 125 | MPF® PLUS | |
| Loan Type | Conventional/ Conforming |
Conventional/ Conforming |
Conventional/ Conforming |
| Minimum "best efforts" master commitment | $5 Million | $5 Million | $100 Million |
| HLB First Loss Account | 4 bps annually | 100 bps | 35 - 45 bps |
| Member's Credit Enhancement (CE) Obligation | Amount equivalent to "AA" credit risks | Amount equivalent to "AA" credit risks less the 100 bps first loss account | Member obtains SMI* to cover all or a majority of the CE obligation |
| Fee paid to member for providing CE Obligation | 10 bps | 7-10 bps performance fee |
13-14 bps (some of which is performance based) |
| Fee paid for servicing loans | 25 bps |
25 bps |
25 bps |
| Servicing released alternative | Yes | Yes | Yes |
| Risk-based capital requirement | Equal to the lesser of member's CE obligation or 4% of the aggregate balance of loans sold | Equal to the lesser of member's CE obligation or 4% of the aggregate balance of loans sold | Equal to the lesser of member's CE obligation or 4% of the aggregate balance of loans sold |
Regardless of which MPF product is used, members will retain all typical origination, closing, and miscellaneous fees. In addition, the HLB pays the member the servicing and CE fees.
* Supplemental Mortgage Insurance