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As you navigate the MPF Program, you will likely come across several new terms and acronyms unique to MPF. There are explanations and definitions to common MPF terms below!

Annual Eligibility Certification (AEC)

The AEC is submitted by PFIs that are active in the MPF program (seller and/or servicer) or have outstanding MPF loans

Credit Enhancement (CE)

Determines each loan's risk in the form of a dollar amount or a percentage.

Credit Enhancement Fee (CE Fee)

A fee payable monthly by an MPF bank to a Participating Financial Institution (PFI) in consideration of the PFI’s obligation to fund the realized loss for a master commitment.

Credit Enhancement Obligation (CEO)

Obtained when completing the loan presentment process either manually or via the batch submission process. Results are given in both a percentage and dollar amount and represent the amount of risk you share.

Delegation of Authority (DOA)

Your DOA determines the specific individuals who can transact MPF business and at what level.

Delivery Commitment (DC)

Also referred to as "rate lock." An agreement in which you commit to deliver mortgage loans to an investor pursuant to a Master Commitment, at a specified price on or before a specified date. May be either a Mandatory Delivery Commitment or a Best Efforts Delivery Commitment.

Document Custodian

The MPF document custodian (Wells Fargo) maintains the safekeeping of your file documents until conditions warrant their release.


A website where you transact MPF business.


Stands for Federal Home Loan Banks. FHLBanks are privately capitalized, cooperative government-sponsored enterprises created by Congress to support housing and community development. There are 11 regional Federal Home Loan Banks in the United States located in Atlanta, Boston, Chicago, Cincinnati, Dallas, Des Moines, Indianapolis, New York, Pittsburgh, San Francisco, and Topeka.


Stands for Freddie Mac (Federal Home Loan Mortgage Corporation). Freddie Mac is a government- sponsored enterprise and a congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

First Payment Date

Typically the first day of the month following the first full month of interest.


Stands for Fannie Mae (Federal National Mortgage Association). Fannie Mae is a government-sponsored enterprise and a federally chartered corporation that purchases qualifying mortgages from lenders and sells securities backed by mortgage loans to investors.

Loan Presentment

Method of providing loan details and borrower information to MPF Program.

Master Commitment (MC)

A document (including any addenda or attachments) executed by a PFI and an MPF Bank, which provides the terms under which the PFI will deliver mortgage loans to the MPF Bank.

Master Servicer

An MPF program vendor that receives monthly servicing reports from all MPF servicing retained PFIs. The master servicer will work with the PFI to validate the monthly reports and report the final data to MPF. PFIs will work with the master servicer directly on all servicing issues such as property losses, loan modifications, MI cancelation, loss mitigation, delinquencies and foreclosures.

Mortgage Partnership Finance® (MPF®)

MPF is a mortgage purchase program established by the Federal Home Loan Bank of Chicago to provide a competitive secondary market alternative for members of participating Federal Home Loan Banks. Mortgage Partnership Finance and MPF are registered trademarks of the Federal Home Loan Bank of Chicago.

MPF Bankk

The Federal Home Loan Bank of Dallas.

MPF Funding

MPF purchases the loan. The date of the MPF purchase is considered the sale date.

MPF Provider

The Federal Home Loan Bank of Chicago.

MPF Service Center

Located at The Federal Home Loan Bank of Chicago.

Participating Financial Institution (PFI)

A PFI is an eligible member or housing associate participating in the MPF Program.

Quality Control (QC)

Quality Control is the process of reviewing a loan to determine program eligibility, accuracy of underwriting and existence of required documentation.

Servicing Released Premium (SRP)

The amount paid to a PFI in return for sale of the Mortgage Servicing Right (MSR) associated with an MPF loan. The servicing acquirer will retain future monthly servicing fee on loans where the originating PFI has received a one-time SRP in return for sale of the MSR.