Mortgage Partnership Finance® (MPF®) Program

A Competitive Option For Local Mortgage Lenders

Reference Guide:

Selling High-Balance 
Mortgage Loans
into the MPF® Program

The Mortgage Partnership Finance® (MPF®) Program was designed with you, our members, in mind. In 1997, the MPF Program was established to provide a competitive secondary market alternative for more than 7,000 members of the Federal Home Loan Bank System. More than 130 FHLBNY member institutions have been approved to do business under the MPF Program, with more joining each day -- commercial banks, savings banks and credit unions. These institutions have sold over 38,000 residential mortgage loans into the program, totaling more than $6.6 billion.

Whether you sell your loans today or simply hold your loans in your own portfolio, the MPF Program can show you how you can increase your profitability, ensure liquidity, and earn more fees for the loans you originate.

The MPF Program gives mortgage lenders another alternative to funding mortgages which may increase profits. It allows member lenders to be competitive in all the fixed-rate products. In addition, the MPF structure capitalizes on the lender's credit expertise (since you understand the borrower, the credit risk of the borrower and the community in which you originate loans). MPF combines that expertise with the FHLBNY's expertise in handling interest-rate risk.

Therefore, unlike other secondary agencies where you sell them all the risk and pay them for taking on the risk, the FHLBNY manages the interest rate, the liquidity and the prepayment risks, while the member manages the credit and servicing risks. The result involves the member receiving a very competitive price for loans plus fees over time for managing the credit and servicing risks. And, there is no minimum amount of loans you need to deliver to take advantage of these benefits.

  • Some of the benefits offered include:
  • Access to the secondary market with competitive upfront pricing
  • Elimination of guarantee fees and loan level price adjustments
  • Transfer interest rate and prepayment risks to the FHLBNY
  • Additional fee income earned for assuming a portion of the credit risk and for servicing the loans
  • Choice of two product options, depending on your risk tolerance
  • No minimum amount of loan deliveries required for participation
  • Free web-based training programs and access to a dedicated customer service staff
  • Convenient electronic transaction processing through the eMPF® website

If you are ready to take advantage of these and other great opportunities offered by the MPF Program, call your MPF Representative at (212) 441-6712.

› Visit the MPF Website

Want to Participate?

To be eligible to participate in the MPF Program, you must be an HLB member.

Become a Member

If you are a member, please contact us at
(212) 441-6712 or email us for more information.

Free MPF Webinars

September 27
Overview of eMPF® Website Enhancements

› View all webinars