MPF® Credit Enhancement Reduction
Credit Enhancement (CE) requirements for MPF Participating Financial Institutions (PFIs) are being reduced to reflect the historical and expected performance of MPF loans.
PFIs must take action for the reduced CE target rating to be applied to new loans sold under all MPF Traditional Master Commitments (MC). We at FHLB Des Moines look forward to working with you through this transition. The steps are listed below, along with information to assist you.
Step 1: Review the Frequently Asked Questions (FAQ) below to understand both the CE target rating change and associated changes to your Master Commitment. If helpful, refresh your knowledge of how risk is shared in the MPF Traditional products with our on-demand webinar.
Step 2: Select the appropriate master commitments below based on your current product usage. You may transition between MPF Original and MPF 125. Follow the tips for completing the required fields not already populated. To see a list of all current active master commitments, please login to eMPF and view the Active Master Commitment Summary report. Each page will list a separate master commitment.
Step 3: Obtain authorized signatures within your institution and return to MortgageProducts@fhlbdm.com. This master commitment transition must be completed by February 28, 2018.
Risk Sharing Original and 125 Products - Webinar
Risk Sharing Original and 125 Products - Slides