How to Price an MPF Xtra Loan - Retained
Loan Level Price Adjustments (LLPA) are fees that go to Fannie Mae. These fees are not part of the MPF price quote. You must determine the LLPA due on each MPF Xtra loan. 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 to Price an MPF Xtra Loan
- Determine what Fannie will require for LLPAs (if covering the LLPAs in pricing).
- Know the profit margin your institution is looking for.