How to Price and Read the MPF Price Sheet - Mandatory Pricing
If you are looking for a profit margin of 1.50
Less the SRP paid to you by the servicer - .68
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.