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MPF Traditional products provide FHLB Dallas members with competitive, alternative access to the secondary mortgage market. FHLB Dallas members that become PFIs gain opportunities to sell certain fixed-rate, conforming mortgage loans into the secondary market. The MPF Program offers benefits to PFIs such as options to retain or sell servicing, next-day funding and more. Explore each MPF Traditional product below to see which one best fits the needs of your institution.

Here is What Differentiates MPF Traditional


MPF Traditional products provide many benefits to PFIs such as competitive execution, monthly credit enhancement fee payments, economic reward for quality loans, same-day delivery and funding and servicing-released options without loan-level price adjustments.

Credit Enhancement

How Risk Sharing Works

MPF Traditional products enable PFIs to share with FHLB Dallas the credit risk associated with home mortgage finance. The MPF Original credit risk sharing structure has an additional three layers of loss protection. Here is how each product’s First Account Loss (FLA) is unique.

  • MPF Original: The monthly accrual rate of the FLA is 4 basis points (0.04 percent). The FLA starts at zero and builds over time calculated and accrued monthly on the outstanding principal balance of the loans in a Master Commitment.
  • MPF 35: FLA is typically equal to 35 basis points (0.35 percent) of the funded amount of all the loans in a Master Commitment.