Bulletin No.: 2012-16
December 10, 2012
SUBJECT: MPF Xtra® Product
The Federal Home Loan Bank of Dallas (Bank) is pleased to announce that we
will offer a new product, MPF Xtra, to our members beginning on December 11,
2012. MPF Xtra provides members of the Bank that have been approved as Mortgage
Partnership Finance (MPF®) Participating Financial
Institutions (PFIs) an opportunity to sell certain fixed-rate, conforming
mortgage loans into the secondary market. PFIs that participate in MPF Xtra are
able to maintain control of their customer relationships and provide their
customers with a competitively priced, long-term, fixed-rate mortgage
MPF Xtra offers additional benefits to members as well, including the
elimination of interest rate and prepayment risks typically associated with
holding long-term, single-family mortgage loans, while transferring the credit
risk to the investor.
We are making available two servicing options to members that participate in
(1) Servicing Retained Option – allows
the originating PFI to retain the servicing rights and the associated customer
relationship for mortgages delivered under the program. The originating PFI
retains all origination and servicing obligations.
(2) Servicing Released Option – allows
the originating PFI to sell the servicing rights for mortgages delivered under
the program to an approved servicer concurrently with the delivery of the
mortgages to the investor. The originating PFI retains all origination
obligations, and retains servicing obligations for the period prior to the
sale, while the assuming servicer acquires the servicing rights and obligations
as of the date of the sale.
For more information about MPF Xtra and how it can work for you, please
contact your Member Sales Officer at 800.442.9841.
President and Chief Executive Officer