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Mortgage Partnership Finance – MPF Xtra

The MPF® program provides an alternative to holding fixed rate loans in portfolio creating additional liquidity opportunities for our members who become Participating Financial Institutions, or PFIs, and sell their loans under the MPF program.

With the MPF Xtra product, participating Federal Home Loan Bank (FHLB) PFIs are able to sell fixed-rate conforming loans into the secondary market, leveraging their FHLB membership to gain access to liquidity. Under MPF Xtra, PFIs of participating FHLBs can use the MPF program to:

  • Offer fixed-rate residential mortgage loans to their borrowers and deliver those loans into the secondary market;

  • Retain the servicing rights and servicing fee income, preserving the ability to cultivate relationships to customers; and,

  • Transfer the interest rate and prepayment risks as well as the credit risk of the associated loans to an investor.

Because the PFI does not retain credit risk for loans sold under the MPF Xtra product structure, there are no risk-based capital or credit risk collateral requirements for the PFI. Additionally, for depository institution members, there is no leverage capital requirement.

MPF Xtra offers PFIs of participating FHLBanks an attractive alternative for selling first mortgage loans they originate, allowing them to take advantage of a product designed to transfer loan risks to the investor.


  • Competitive execution
  • Retain valuable servicing fee income and borrower relationships
  • Economic value for quality loans
  • Electronic processing through the eMPF® website
  • Next day funding
  • After funding note certification
  • Servicing released options available


  • Term: Up to 30 years, fixed rate, fully amortizing
  • Maximum LTV: 95%
  • FICO Score: Varies depending on loan characteristics; minimum 620
  • Loan limits: Agency conforming, conventional only
  • Occupancy: Owner occupied (1-4 units) and second homes
  • Property type: All types except co-ops and non-owner occupied
  • Underwriting: Follow the MPF Origination Guide, MPF Underwriting Guide, and MPF Xtra Manual
  • Delivery Commitment: 5, 15, 30, 45, and 60 calendar days
  • Pricing: Premium and discount pricing available
  • Remittance: Actual/Actual, according to the MPF Xtra Manual
  • Servicing: 25 bps, follow the MPF Servicing Guide and the MPF Xtra Manual
  • Master Commitment size: $5 million minimum, best efforts
  • Delivery Commitments: Mandatory and best efforts

Who should take advantage of this product?

The MPF Xtra product is designed for any approved participating FHLB member that is actively engaged in mortgage lending in their community, seeks to minimize risk, and has a high regard for the value of the customer relationship. With this product, members gain access to secondary market liquidity, minimizing the interest rate and prepayment risks of the loans and transferring the credit risks to the investor. The originating member institution can retain the servicing rights and the associated, valuable, customer relationship.

*The MPF Program is not providing accounting or legal service with respect to the accounting treatment of MPF Program assets and liabilities. The PFI is expected to consult with its own accountants and attorneys for advice on this matter.

"Mortgage Partnership Finance," "MPF," "eMPF," and "MPF Xtra" are registered trademarks of the Federal Home Loan Bank of Chicago. The "MPF Mortgage Partnership Finance" logo is trademarked by the Federal Home Loan Bank of Chicago.

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