MPF Connection
Volume 6 | Issue 13
There’s Some Good News Brewing!
You might have known the number of jobs waiting to be filled rose in December as employers tried to ramp up hiring in factories, retail, and business services. It was nearly a three-year high, according to The Associated Press, and offers another hopeful sign in the still-struggling labor market.
What you might not have known is that, more than ever, members are taking a look at the Mortgage Partnership Finance® (MPF®) Program. The MPF Program, offered by the FHLBNY, allows an approved member, known as a Participating Financial Institution (PFI), to enjoy a very competitive upfront price no matter the volume of loans sold, and with no loan level price adjustments, guaranty fees, or adverse market fees.
Rather than being charged for the inherent credit risk of the loans sold, you share in the credit risk of the loans. The FHLBNY rewards you for sharing in that risk and for the loan credit quality by paying a Credit Enhancement fee. Members that are confident in their mortgage underwriting and willing to share in the credit risk of the loans sold certainly enjoy the benefits of the MPF Program.
The FHLBNY has offered the MPF Program since 1999 and the performance of the MPF loan portfolio has been outstanding. This strong performance is a testament to our PFIs’ responsible underwriting and lending practices.
Are you confident in your mortgage underwriting and willing to share in the credit risk of the mortgage loans you originate? If so, the MPF Program has the potential to help you increase profitability, ensure liquidity, and earn greater fee income from the loans you originate.
Interested in becoming a PFI or learning more about the MPF Program? Contact Tom Doyle, Director at (212) 441-6712, or Heather Gostomski, MPF Specialist, at (212) 441-6701.
A PFI’s Chief Residential Lending Officer Told Us…
One of his borrowers refinanced their existing residential mortgage loan with a competitor, and the competitor then sold the loan into the MPF Program. Why give the competition an edge? Use the MPF Program as a tool to stay competitive and maintain all your valuable customer relationships, while enjoying additional income from the performance of the loans you sell.
What Makes MPF® Pricing Attractive?
- Competitively priced
- Even pricing — pricing is identical no matter the volume of loans sold into the program
- No adverse market fees
- No guaranty fees
- No loan level price adjustments
- Fee income for originating quality loans
Want to receive MPF pricing each business day? E-mail us to be added to our distribution list.
Upcoming Industry Event
New Jersey Credit Union League Reality Check Conference
February 27-29
Harrah’s Resort, Atlantic City, NJ
Contact us to set up an appointment during the conference.
Featured MPF Workshop
Loan Eligibility
March 20 at 11:30 a.m. EST (1 hour)
This workshop is a requirement to participate in the program.
Click for the complete workshop schedule and to register.
