How to Price and Read the MPF Price Sheet - Mandatory Pricing

Pricing Example

If you are looking for a profit margin of      1.50
Less the SRP paid to you by the servicer    - .68
Equals                                                                 .82

To make your required margin and looking for an MPF 45 day price of .82, using the pricing grid below you would lock at note rate of 3.125 for a price of .93505710. 

Some PFIs will price to their profit margin and the SRP is just extra income. In this scenario using the pricing grid below for a 45 day lock with at a note rate 3.25, you would have an MPF price of 1.87599110.

• Level Price Adjustments (LLPAs) do not apply to the MPF Traditional product.
• Note rates are quoted in 1/8’s.
• MPF Traditional pricing is mandatory delivery.
• An agent represents a premium (+) or discount (-) payable on a loan funding.
• MPF Traditional follows the Agency's conforming maximum loan limits. See the Selling Guide section 2.1 & 2.4 for max LTV & TLTV. 
• High balance pricing is also available.

Note: A high balance loan is a loan in an area of the country having a high cost of housing (Boston, New York, California, Washington, D.C., etc.) Refer to Exhibit N: Conventional High-Cost Area Loan Limits. 

• Loans are priced in 15, 20 and 30 year fixed rate terms:
  • Odd amortization terms are allowed
  • 120 – 180 month term priced at a 15-year term
  • 181 – 240 month term priced at a 20-year term
  • 241 – 360 month term priced at a 30-year term
• The posted pricing is available within the eMPF website.
• When pricing the loan, the remittance option will depend on which servicer is purchasing the servicing:
  • Use Actual/Actual remittance option when IBMC or SLS purchases the servicing.
  • Use Scheduled/Scheduled remittance option when Colonial purchases the servicing.
• Pricing is subject to change throughout the day based on bond market movement
• Loan funding requests may be made up to 3:30 PM CT on the day of the price expiration.