By Patrick Sullivan
The number of credit unions delivering loans under the Mortgage Partnership Finance (MPF) Program has tripled since 2009. During this time, the share of total MPF Program loans delivered by credit unions has increased to more than 20%. We are encouraged to see this growth in participation among our valued credit union members, and remain committed to providing ongoing liquidity and support for their residential lending efforts within their communities.
The illustration below is evidence that more credit unions are taking advantage of the MPF Program.
MPF Program is Available to Federal Home Loan Bank Members
The MPF Program is available to credit union members of the Federal Home Loan Bank System across the country. Our dedication to service and training has resulted in increased member participation, particularly among institutions that face challenges with alternative secondary market investors as the industry changes and non-depositories gain prominence.
The MPF Program is a One-Stop Shop
Credit unions use a variety of MPF products that serve their secondary mortgage market needs and the needs of their members. The majority of deliveries are conventional loans under the suite of MPF Traditional products. Of these, the MPF Original product provides
credit unions additional income for sharing in the credit risk based on the performance of the loans delivered. Though some MPF products do not offer credit risk sharing, they provide other benefits. For example, through the MPF Xtra product, credit unions gain access to Fannie Mae products, tools, and technologies. Our MPF Government and MPF Government MBS products allow credit unions to sell fixed-rate mortgage loans that are insured or guaranteed by FHA, VA, USDA – RHS 502 program, and HUD 184. Also, under the MPF Direct product, credit unions that originate jumbo mortgages have the ability to sell loans up to $2.5 million, both fixed-rate and ARMs.
Serving Credit Unions for 20 Years
Since 1997, the MPF Program has focused on providing credit unions with mortgage product solutions. A majority of the MPF products allow credit unions to choose the type of remittance that suits their institution: servicing retained or servicing released. Through the MPF Xtra product credit unions have the flexibility to deliver loans through a best efforts delivery commitment. The most recent product enhancement has been under the MPF Traditional products, where the MPF Program will buy loans that are up to 24 months seasoned.
To learn more about the MPF Program and hear about member experiences, visit fhlbmpf.com.
Patrick Sullivan is vice president-MPF Mortgage Analytics with the Mortgage Partnership Finance program of the FHLB.