Enhanced guidelines provide participating FHLBank member financial institutions with additional options for affordable lending, manufactured housing, renovation financing, and lender-funded affordable housing assistance programs

The Mortgage Partnership Finance^® (MPF^®) Program has expanded eligibility for its MPF Traditional products, enabling participating FHLBank member financial institutions to sell additional types of qualifying mortgages that support affordable and sustainable homeownership. The enhanced guidelines include qualifying mortgages originated through affordable lending programs, loans for manufactured homes, home improvement and renovation financing, and lender-funded affordable housing assistance programs. The changes reflect feedback from member institutions and more closely align MPF Traditional eligibility with current mortgage market standards.

The expanded eligibility encompasses low-income borrower programs, allowing qualifying mortgages for borrowers who meet applicable income requirements to have loan-to-value ratios of up to 97%. Manufactured housing now includes single-width homes with 30-year mortgage terms, flexible down payment sources including land-in-lieu and gift funds, and secondary financing options. Home improvement and renovation loans are eligible when the property is appraised based on its as-completed value and renovations are finished before the loan is sold through the MPF Program. Lender-funded affordable housing assistance programs for low-income borrowers and neighborhoods are now incorporated into MPF Traditional eligibility, extending member participation into community development and affordable housing initiatives. These lender-funded programs are separate from the Affordable Housing Program administered by the Federal Home Loan Banks.

"The MPF Program listened to its members and acted on their feedback," said Thomas Hazlett, Senior Vice President of Mortgage Lending at New Market Bank, Lakeville, Minnesota, whose institution participates in the MPF Program. "These expanded guidelines provide the flexibility member institutions need to serve underserved borrowers in their communities and support affordable homeownership. The enhancements directly address loan types lenders asked the MPF Program to accommodate and give participating institutions more options to support affordable homeownership."

The expanded guidelines build on over two decades of MPF Program evolution. Member feedback has consistently shaped MPF product enhancements. These expanded guidelines reflect the same principle by responding to members’ needs and allowing them to sell a broader range of qualifying mortgages through the MPF Program.

To learn more about the expanded eligibility guidelines, access the following resources:

• On-Demand Webinar
• Frequently Asked Questions: MPF Enhanced Guidelines FAQs
• Product Overview: MPF Enhanced Guidelines Product Sheet

For questions, contact the MPF Service Center via the MPF Customer Service Portal, email MPF-Help@fhlbc.com, or call 877.345.2673.

ABOUT THE MORTGAGE PARTNERSHIP FINANCE^® PROGRAM

The Mortgage Partnership Finance^® Program allows eligible Federal Home Loan Bank members to sell conventional conforming and government loans to their FHLBank or other investors. The program provides secondary market access, liquidity, and mission-aligned mortgage products designed for member lending objectives. The MPF Program is administered by six participating Federal Home Loan Banks and serves member financial institutions across the country. "Mortgage Partnership Finance" and "MPF" are registered trademarks of the Federal Home Loan Bank of Chicago.

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"These expanded guidelines provide the flexibility member institutions need to serve underserved borrowers in their communities and support affordable homeownership." said Thomas Hazlett, Senior Vice President of Mortgage Lending at New Market Bank