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 the loan should be priced

  • Determine what Fannie will require for LLPAs.
  • Know the profit margin your institution is looking for.

Example
Required LLPAs                            1.00
PFI Profit Requirement                1.50
You will need to price to make   2.50

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 2.50.

Xtra Mandatory Pricing