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Bulletin No.: 2012-16
December 10, 2012

TO: STOCKHOLDERS

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 product. 

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 MPF Xtra:

(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.

Sincerely,

 

Terry Smith

President and Chief Executive Officer

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