MPF Traditional FAQs

Do you have a question about the MPF® Traditional Product?

We are here to help! Start with our most frequently asked questions below. Contact us for more information.


General

  • Yes, if more than one funding occurs on a single business day, entries will be combined on a single line item in a PFI’s primary DDA statement.

  • When Delivery Commitment extension fees, Pair Off fees, MPF Fundings are transacted by the PFI, the individual completing the process will receive an email of confirmation from MPF. It is suggested that these emails are forwarded to the PFI’s accounting department so they are aware of the transactions going through the general DDA account. Other fees that may need to be communicated to the accounting department would include custody fees and late investor reporting fees.

    When a PFI reviews their FHLB accounts on eAdvantage, they will notice there are codes used after transactions.

    Click here for code definitions.

  • Reports for managing MPF activity are available within the eMPF website. If you need access to eMPF, forms required for managing MPF authority updates are available on this site under the “Resources” tab. Below you will find samples of some reports available in eMPF, as well as a description of these reports.

    These are not real time reports.

  • Please contact your Mortgage Relationship Manager to begin the process of reactivation.

  • On the eMPF login screen, select the "Forgot Password" option. You will need your User ID to reset your password. 

    If you do not have your User ID, please contact the MPF Service Center at 877.345.2673 and choose Option 1 to confirm your User ID and reset your password.

  • Visit fhlbmpf.com and click on “MPF Guides” in the upper right hand corner. 

  • Visit fhlbmpf.com and choose “AllRegs Guides” in the upper right hand corner to register for MPF announcements. You can manage your options by clicking on "E-Mail Subscriptions".

  • Manage MPF Program Authority Updates. A list of documents and a description of the forms and authorities are provided. 

  • Training for MPF can be found on our MPF Website.

  • For questions on which products give you the best execution, check out the Product Comparison and/or contact your Mortgage Relationship Manager. 

Accounting

  • The MPF Program and the FHLB Des Moines do not provide guidance regarding completion of your Call Report. However, Wilary Win. LLC has done extensive research on the MPF program and can provide you with guidance on how to report including the MPF SSFA Calculator.  You may also reach out to your regulator.

  • MPF Traditional is a unique product in which the member shares in a small amount of risk on the mortgage loans sold. CE determines each loan's risk in the form of a dollar amount or a percentage. 

    MPF pays the member a monthly net credit enhancement income (CE Income) for sharing in the loan risk for as long as the loan is held in FHLB Des Moines' portfolio. View our on-demand webinar for a detailed overview of how risk is shared.

  • Credit Enhancement Fee
    The monthly Net CE Credit Enhancement Income can be found on eAdvantage under Account Balances in the main DDA account around the 15th of each month.

    Stock Information
    FHLB Des Moines members are required to hold Membership Stock. This stock requirement is based on the asset size of each member.

    Activity stock supports your borrowings from the FHLB Des Moines, as well the mortgage loans sold into the MPF program. The activity stock requirement is based on 4% of these activities. For the MPF loans it is based on the outstanding balance of the mortgage loans sold to MPF. Your Activity based stock requirement for mortgages will be adjusted daily for mortgage loans sold to MPF. On any day you don’t have sufficient activity based stock, the FHLBDM will automatically debit your general DDA account. Once a month your activity based stock will be adjusted to reflect principal pay downs and mortgage loan payoffs for your MPF mortgages. This adjustment will occur or about the 18th of each month.

    Stock requirements can be monitored by accessing the Capital Stock screen in eAdvantage. See screen shot below:
    summary of capital stock screenshot

  • 1. An active Master Commitment (MC) in which loans are still being delivered – each new loan has the potential of changing the Credit Enhancement (CE).
    2. CE error – if in the QC process it is found the information input for loan presentment purposes was incorrect the loan will be re-credit enhanced with the correct information which may result in a change to the CE Obligation.
    3. CE Re-set – after 10 years the paid off loans are removed from the MC; the remaining loans will be re-run through the scouring model. The CE may be reset based on the remaining loans in the MC. The same process will occur every five years thereafter.

  • You are required to monitor the P&I Custodial Account within your institution if you are retaining the servicing on your loans. On any day the account balance exceeds $2,500.00, you must move all funds in the account to your FHLBDM eAdvantage account titled “MPF AA.” Additionally, any funds regardless of the dollar amount in the P&I Custodial Account on the first day of the month, must be moved to your FHLBDM eAdvantage account titled “MPF AA”.

    The P&I funds will accumulate in the non-interest-bearing MPF AA account.

    After the cut off of the MPF Loan Activity cycle, you report all the loan activity for the month to the MPF Master Servicer. The Master Servicer works with you to reconcile and identifies differences in the reported information via the Turn Around Report (TAR). The Master Servicer reports the final P&I amount to MPF just before the 18th of each month. MPF will debit the MPF AA account on the 18th of the month (if the 18th is a non-business day the account will be debited on the business day prior to the 18th) for the amount provide by the Master Servicer. 

    In this scenario, you have given up the float income on the MPF loans which allowed MPF to pay you a better execution price for the loan.

  • Visit the FHLB Des Moines site for wire information and the fee schedule. 

Investor Reporting

  • As borrower’s payments are collected, the funds are held in the MPF P&I Custodial account (the DDA set up at your institution when you applied for the MPF Traditional product).

    • PFI monitors the P&I custodial account daily.
    • On any day the P&I custodial account balance exceeds $2500 (net of the servicing fees), transfer funds to your MPF A/A account via the eAdvantage banking site.
    • Any amount remaining in the account on the first day of the month following cut off (regardless of the balance), must also be transferred to MPF A/A account.
    • The MPF A/A account is set up exclusively for P&I remittance.
    • Transfer funds by 10:00 AM (CT) on the next business day following receipt of the funds – the earlier the better.
      • The MPF Servicing Guide says 2:00 PM, best practice is 10:00 AM particularly when funds are sent via ACH.
      • Non-compliance will result in assessment of penalty fees.

    You have three remittance options

    • Wire
    • Recurring ACH
    • Transfer funds from a FHLB Des Moines account to the account designated exclusively for P&I remittance (MPF A/A account).

    P&I remittances will accumulate in the MPF A/A account (non-interest bearing account).

    • Once a month the account will be debited based on the reports submitted to and reconciled to with the master servicer.
    • A debit will occur on the 18th of each month, or the business day prior to if the 18th is a non-business day.

  • The Delinquency Reporting Excel spreadsheet can be found in the MPF Guides under Exhibits. 

  • The Exception Clearing Excel spreadsheet can be found in the MPF Guides under Exhibits. 

Definition

  • The MPF program has partnered with Computershare Limited to perform various master servicing duties on the MPF Provider’s behalf. PFIs are required to report MPF mortgage loan activity directly to the Master Servicer.

  • The MPF program has partnered with Computershare Limited to provide mortgage document custodial services for the MPF Program and its PFIs. The Document Custodian maintains the safekeeping of your file documents until conditions warrant their release.

  • The MPF Provider serves as manager and provider of services to PFIs and MPF Banks in connection with the MPF Program.

  • MPF is a mortgage purchase program established to provide a competitive secondary market alternative for members of participating Federal Home Loan Banks.

  • MPG is a team at FHLB Des Moines that administers the MPF program, offering support and guidance throughout your MPF journey. Contact Us for sales/inquiries or service and support. 

  • A secure, transactional website where PFIs can provide their loan data to MPF, lock and sell loans, and access reports and resources.