Earn extra income by selling loans to the MPF® Program

Competitive access to the secondary mortgage market through FHLB Dallas

Through its Mortgage Partnership Finance® (MPF®) Program, the Federal Home Loan Bank of Dallas offers a suite of on-balance sheet products that enable members to earn additional income based on the performance of their loans by sharing in the credit risk associated with the loans they sell to FHLB Dallas. 

There are three types of on-balance sheet products: MPF Original, MPF 125 and MPF 35. Overall, the products offer participating members the ability to originate, sell and service fixed-rate, residential mortgage loans and receive an additional credit enhancement (CE) fee for sharing the credit risk. FHLB Dallas manages the liquidity, interest rate and prepayment risks of the loans while the participating member manages the credit risk of the loans. 

Members using MPF on-balance sheet products can earn revenue in several ways. Members are paid an upfront premium for selling FHLB Dallas the loan, earn fees for either servicing or selling the servicing for their loans and members can also earn monthly CE income as their loans perform! 

The MPF Program accepts several types of conventional and conforming loans with a minimum credit score of 620. 

Benefits of MPF:

  • Offers fixed-rate residential mortgage loans to borrowers
  • Access to the secondary market
  • True delegated underwriting
  • Mandatory and best efforts pricing options available
  • Option to retain servicing or sell servicing for a premium
  • Transfer interest rate and prepayment risks typically associated with holding long-term, single-family mortgage loans to the investor
  • No agency loan-level price adjustments
  • Single loan or bulk delivery
  • Next day funding

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