Pricing MPF Xtra Loans
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
- 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)- see the SLS SRP Schedule via the eMPF website (Pricing Tab).
Required LLPAs 1.00
PFI Profit Requirement 1.50
Less the SRP paid by SLS -.68
You will need to price to make 1.82
If a 45 day lock is needed based on the example above, the note rate would be 3.125 with a MPF purchase price of 1.8372.
Tip: Understanding Sub Product Pricing
Tip: Convert MPF Pricing to Par Pricing