How the MPF® Program Supports the Credit Union Philosophy
Last Updated on June 10, 2024
In an article originally published June 2024, Mortgage Partnership Finance features FHLB Des Moines member, Ascentra Credit Union for their participation in the MPF® Program.
Written by Charlie Kilburg, Vice President of Mortgage Lending, Ascentra Credit Union
Like many credit unions, Ascentra is dedicated to the philosophy of “people helping people” and committed to serving our members and communities. We provide financial services to roughly 40,000 members in Iowa and Illinois, keeping our motto at the heart of everything we do: “Listening, caring, doing what’s right.” When we began selling mortgage loans through the Federal Home Loan Bank of Des Moines’s Mortgage Partnership Finance® (MPF) Program about a decade ago, we were drawn by the values our organizations shared: Like credit unions, the FHLBanks are cooperatives dedicated to serving their member-owners. Like us, they focus on providing financial opportunities and supporting the economic health of our communities. And through the MPF Program and other services, they provide tools to help credit unions meet these goals.
Building Our Value to Members
Unlike most investors, the MPF Program doesn’t charge loan-level price adjustments (LLPAs) for mortgages sold under its MPF Traditional products, so our members won’t have to pay additional fees based on their loan-to-value ratio, credit score, or other loan attributes. This unique feature sets us apart from our competition, attracting both existing and new members. Borrowers may not be familiar with LLPAs, but they recognize that these “rate bumps” (as we sometimes call them) raise the cost of their loan. We’re happy to let them know that with MPF Traditional, if you’re approved, you’ll have the rate advertised.
Building Our Value to Communities
As housing prices and the cost of living have risen, it has become increasingly difficult for first-time homebuyers to save enough to cover their down payment and closing costs. By pairing the competitive rates we’re able to offer through the MPF Program with assistance from grant programs provided by our local FHLBank, we’re making homeownership possible for many more people in our communities. Inspired by the FHLBanks, Ascentra has also created our own supplementary grant program so we can empower even more first-time homebuyers. In addition to providing funding for area nonprofits, offering scholarships, and encouraging our employees to volunteer their time, opening doors to homeownership is one more way we’re supporting our communities.
Building Member Relationships
When homebuyers become members of our credit union, they begin a lifelong partnership that gives them access to all the other services we offer beyond mortgage lending. We maintain that relationship and ensure a positive member experience by servicing all the loans we originate, so we appreciate that the MPF Traditional products provide the option to retain servicing.
Read the complete article published June 2024 by Mortgage Partnership Finance here.