Subproduct Pricing FAQs

MPF Traditional Subproduct Pricing

• What is subproduct pricing?

  Subproduct pricing provides differentiated pricing based on the loan size. Analysis of loan data has shown that lower loan amounts typically have a slower pre-payment speed.

  The secondary market is generally willing to pay a better price for loans that will stay on the books longer.  

• How do I access subproduct pricing for MPF Traditional?

  If you have an active MPF Traditional Master Commitment, you already have access to the new subproduct pricing schedules. No new product sign-up or additional Master Commitment is required.

  If you do not have an active MPF Traditional Master Commitment, contact your MPF Mortgage Relationship Manager.

• What type of loans are eligible?

  Subproduct pricing is available for 30-year fixed rate conventional loans under MPF Traditional for a maximum loan amount of either $250,000 or $350,000.  

• Will the new subproduct pricing appear in my product pricing engine (PPE)?

  Yes. The additional low loan balance pricing schedules will be available alongside existing pricing schedules on the eMPF website and reflected in most PPE.

  It is recommended to proactively coordinate directly with your PPE provider to ensure the correct setup for proper integration of the new subproducts.

• How do I lock loans using subproduct pricing?

  To begin, select the associated subproduct price category from the dropdown in the delivery commitment process. Subproduct pricing must be less than or equal to the maximum limit.

  • Fixed-30 Yr $250,000 max loan amount

  • Fixed-30 Yr $350,000 max loan amount

  If you are locking loans in bulk, qualifying balance loans must be locked separately in the appropriate subproduct. The system will not automatically identify or apply the correct subproduct for you.

  Additional guidance is available by view our on-demand training. 

• What happens if the loan exceeds the maximum loan amount at finalization?

  If there is a possibility the final loan amount could exceed the maximum threshold, you should select a subproduct that allows sufficient flexibility. The standard MPF Traditional 5% tolerance will not allow you to exceed the subproduct maximum loan amount. 

  Our on-demand training provides details on options to consider in these instances.

• How does the new subproduct pricing compare with conventional pricing?

  The new low-loan balance pricing schedules account for the higher relative cost of originating smaller loans. By using dedicated pricing schedules, lenders can achieve more accurate pricing and improved execution compared with standard conventional loan pricing structures.

• Why is FHLB Des Moines introducing low-loan balance pricing?

  Multiple pricing schedules have long been standard across conventional, government and secondary mortgage market programs, reflecting the higher fixed origination costs that smaller-balance loans often carry as a percentage of the loan amount. To address this dynamic, FHLB Des Moines is introducing low-loan balance pricing schedules that allow members to price these loans more precisely, support competitive outcomes for borrowers and maintain sustainable margins.