Whether your institution is looking to better retain hard-earned customer relationships, or profit from the servicing asset upfront, MPF offers a solution.

Understanding Your Options

Before selecting a servicing option, consider the potential advantages and disadvantages to your institution. 

  • Servicing Retained
    Advantages Disadvantages
    Retain relationship with borrower Necessary cash investment and capital reserve requirements to keep the servicing asset
    Servicing cash flow stream Establish business policies and procedures to support servicing
    Create countercyclical annuity to smooth earnings over various interest rate cycles Costs for subservicing and other third-party service providers, if needed
    Possible to scale servicing costs by using a subservicer Technology investments or outsourcing technology
    Create franchise value in firm
  • Servicing Released
    Advantages Disadvantages
    Leverage funds received upfront for the servicing asset to support other business areas Hedge interest rate risk of the MSR and accounting responsibilities
    Avoid servicing asset risk Potential loss of borrower relationship and/or refinance opportunity
    Do not have to hold capital against the MSRs in portfolio Loss of long-term, revenue stream
    Do not need a servicing operation Pricing could change during lock period
    Depending on market environment, may offer a better execution Early payoff-SRP recapture risk
    Possible separate wires for loan asset and SRP fundings
    Possible minimum monthly volume requirements by servicing buyer

Need help choosing the best option?

Refer to the chart below to learn more about your servicing options for each MPF Product.

MPF® Traditional (125) MPF® Traditional (Original) MPF® Traditional (Government) MPF Xtra®
Servicing Servicing Options:
Released or Retained
Remittance Options:
A/A, S/R, S/S
Remittance Options: A/A Only
Servicing Fee Income 25 BPS 25 BPS 44 BPS 25 BPS
Same-Day Loan Delivery Funding

Our mortgage team can answer additional questions and assist you throughout the process.

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A/A= Actual/Actual
S/R = Single Remittance
S/S = Scheduled/Scheduled