MPF® Traditional Training:Retained

Originating & Underwriting

Pricing & Locking a Loan

Benefits of MPF Traditional pricing include:

  • No additional points for low loan amount;
  • No additional points for second homes;
  • No additional points for cash out refinances;
  • No Loan Level Price Adjustments (LLPAs); and
  • No MPF delivery fees.

Determine your borrower's interest rate.

  • Access pricing at the eMPF website to view rates, terms & lock periods. Rate sheets are posted between 8:30 AM and 3:30 PM (CST).

Tip: How to read the MPF Price Sheet

Loans can be locked via the eMPF website between 8:30 AM and 3:30 PM (CST).

  • With MPF mandatory delivery, you won’t lock a specific borrower or property address; you will only lock a dollar amount, term, interest rate and lock period.
  • Once your lock is submitted and confirmed within eMPF, you will be emailed a lock confirmation.
  • It is recommended you print the confirmation for the loan file.
  • Additionally, within the DC confirmation screen, you have the option to email the confirmation to someone else in your institution, provided they are on the dropdown list.
  • Always proof your confirmation for accuracy.
  • You can deliver multiple loans using one Delivery Commitment (DC) number.
  • You cannot use multiple delivery commitments for one loan.
  • You can over-deliver a loan.
  • Learn more about MPF Traditional Locks and Tolerances.

Demo: Locking a loan within the eMPF website

Demo: Locking a loan within the eMPF websiteplay video


  • Lock Extensions
    • There will always be an extension fee regardless of how the bond market has moved.
    • Extensions can be for one day at a time or for multiple days; an extension cannot exceed a total of 30 calendar days.
    • Extension fees will be calculated and quoted to you; you will have 60 seconds to accept or decline the quote. (For quotes not accepted within 60 seconds, simply resubmit.)
    • Extension fee will be charged to your general Demand Deposit Account (DDA) within eAdvantage (your institution's banking site with FHLB Des Moines) on the date the extension is accepted.
    • You will want to have funds in your general DDA to cover the extension fee.
    • To request an extension go to the eMPF website “Transaction” tab select "Delivery Commitment", then "Extensions."
    • MPF Traditional Conventional and Government delivery commitments may be extended until 4:00 PM CT. This allows an additional 1/2 hour to obtain an extension. When MPF announces an early close for deliver commitments and funding activity, extensions will have the same earlier cut-off time (typically 1:00 PM CT).
       

Demo: Extending a lock within the eMPF website

Demo: Extending a lock within the eMPF websiteplay video


  • Loan Amount Reductions
    • When reducing a delivery commitment, try to be as close to the new loan amount as possible. 
    • Once a DC is reduced, the 5% tolerance rule no longer applies and the new tolerance becomes $50.
    • When reducing a DC prior to price expiration, the pair off fee will be based on the amount of change without the benefit of the tolerance rule and the price (based on the days left in the (DC) in effect at the time of reduction).
    • Reduction fees will be calculated and quoted to you; you will have 60 seconds to accept or decline the quote. 
    • For quotes not accepted within 60 seconds, you may simply resubmit.
    • Reduction fees for a pair-off will be charged to your general DDA within eAdvantage, on the date the reduction fee is accepted.
    • To submit a DC reduction go to the eMPF website‘s “Transaction” tab select “Delivery Commitment”, then “Reduction.”
       

Demo: Reducing a lock within the eMPF website

Demo: Reducing a lock within the eMPF websiteplay video

Tip: See MPF Traditional Loan Amount Reduction examples


  • Pair-off At Expiration
    Pair-offs are charged when a mandatory delivery commitment is delivered at less than 95% of the original amount. Pair-off fee will be calculated by comparing price at the time of execution to the current price (based on the days left in the delivery commitment) at the time of pair-off.
    • Pair-off fees will be charged for loans delivered at less than 95% of the original Delivery Commitment.
    • If you sell MPF a loan prior to price expiration, the fee will not be calculated/charged till the last price sheet of the day on the day of expiration. (The reason for this is DC’s can be over delivered by greater of 1% or $100,000.00)
    • These fees are charged at expiration with the benefit of tolerance.
    • Pair-off fees will be charged to your general DDA within eAdvantage, on the date the day of expiration.

    Tip: See MPF Traditional Pair-Off Fee examples

  • Over-Delivery / Price Adjustment Fee
    Occasionally, the lender or borrower may decide to increase the loan amount to an amount that is greater than maximum allowable under the exiting DC. This may occur for various reasons, including when a borrower lowers their down payment or when a mortgage is substituted to prevent or reduce a pair-off fee.
    • An over-delivery fee (also known as a price adjustment fee) will be charged on amount delivered in excess of 105% of the original delivery commitment.
    • A delivery commitment (lock) can be over-delivered by the greater of 1% or $100,000 but cannot exceed the maximum loan limits.
    • The amount charged to your general DDA account will be based on the last price sheet of the day on the day the loan is purchased by MPF.

    Tip: See MPF Traditional Over-Delivery / Price Adjustment Fee examples