Glossary

As you navigate your way through the Mortgage Partnership Finance® (MPF®) Program, you will likely come across several new terms and acronyms unique to MPF. Here you will find explanations and definitions to common MPF terms.

Glossary

  • The AEC is a yearly process by which FHLB Des Moines members maintain their eligibility to participate in the MPF Program.

  • MPF Traditional is a unique product in which the member shares in a small amount of risk on the mortgage loans sold. CE determines each loan's risk in the form of a dollar amount or a percentage. 

  • Under the MPF Traditional product, MPF pays a member a monthly income called the net credit enhancement fee (CE Fee) for sharing in the loan risk for as long as the loan is held in FHLB Des Moines' portfolio. View our on-demand webinar for a detailed overview of how risk is shared.

  • Obtained when completing the loan presentment process either manually or via the batch submission process, under the MPF Traditional product. Results are given in both a percentage and dollar amount and represent the amount of risk you share.

  • A form completed by an institution to delegate MPF authorities to specific individuals. Manage your existing MPF authorities

  • Also referred to as "rate lock." An agreement in which a PFI commits to deliver mortgage loans to an investor pursuant to a Master Commitment, at a specified price on or before a specified date. Mandatory Delivery Commitments or a Best Efforts Delivery Commitments are available based on product.

  • The MPF program has partnered with Wells Fargo Bank, N.A. to provide mortgage document custodial services for the MPF Program and its PFIs. The document custodian maintains the safekeeping of your file documents until conditions warrant their release.

  • Is a secure site used for MPF quality control and default management. Obtain log-in credentials and sign up to receive email notifications.

  • A secure, transactional website where PFIs can provide their loan data to MPF, lock and sell loans, and access reports and resources.

  • There are 11 regional Banks that make up the Federal Home Loan Bank (FHLBank) System, established by Congress in 1932 to support mortgage lending. Regulated by the Federal Housing Finance Agency, the FHLBanks are cooperatively owned by their members, operate independently with their own boards of directors and are registered with the Securities and Exchange Commission.

  • Typically the first day of the month following the first full month of interest.

  • Fannie Mae (Federal National Mortgage Association) is a government-sponsored enterprise and a federally-chartered corporation that purchases qualifying mortgages from lenders and sells securities backed by mortgage loans to investors.

  • A method of providing loan details and borrower information to the MPF program under the MPF Traditional product.

  • A Master Commitment is an agreement that defines the terms under which MPF will fund or purchase a pool of mortgages to be delivered by a PFI institution.  

  • The Master Servicer performs various master servicing duties on the MPF Provider’s behalf in connection with the MPF Program. PFIs will work with the master servicer directly on all servicing issues such as property losses, loan modifications, MI cancelation, loss mitigation, delinquencies and foreclosures.

  • MPF is a mortgage purchase program established to provide a competitive secondary market alternative for members of participating Federal Home Loan Banks.

  • One of 11 regional Banks that make up the Federal Home Loan Bank (FHLBank) System, the Federal Home Loan Bank of Des Moines supports mortgage lending. 

  •  MPF purchases a loan. The date of MPF purchase is considered the sale date.

  • The MPF Provider serves as manager and provider of services to PFIs and MPF Banks in connection with the MPF Program.

  • The MPF Service Center is available to assist you with originations, the eMPF website, custody, investor reporting, servicing and delinquency management related questions. See our Who to Call directory for more information. 

  • A PFI is an eligible member or housing associate participating in the MPF Program.

  • Quality Control is the process of reviewing a loan to determine program eligibility, accuracy of underwriting and existence of required documentation.

  • The amount paid to a PFI in return for sale of the Mortgage Servicing Right (MSR). The originating PFI receives a one-time SRP; the servicing acquirer will retain future monthly servicing fees on loans. 

  • The Welcome Center provides valuable information on MPF processes to assist in managing your MPF portfolio, with access to resources and information featuring custody, servicing, investor accounting, quality control and default management.