How to Price an MPF Xtra Loan - IBMC

Loan Level Price Adjustments (LLPAs) are fees that go to Fannie Mae.  These fees are not a part of the MPF price quote. You must determine the LLPAs due on each MPF Xtra loan. Reminder- if loan terms change, the LLPAs could change as well. 

Tip: See the LLPA Pricing Worksheet & Matrix

  • You have two options as how to cover the LLPAs:
    • Price up to cover the fees (most popular).
    • Charge the LLPAs to the borrower.

How the loan should be priced

  • Determine what Fannie will require for LLPAs.
  • Know the profit margin your institution is looking for.
  • Determine the Servicing Released Premium (SRP).

Example
Required LLPAs                           1.00
PFI Profit Requirement               1.50
Less the SRP paid by IBMC      -0.68
Consider pricing to make           1.82

If a 45 day lock is needed based on the example below, the note rate would be 3.125 with a MPF purchase price of 1.8372.

Xtra Mandatory Pricing