Accounting & Regulatory Guidance for the MPF® Program [Resource]

Summary

This guide is designed to provide Participating Financial Institutions (“PFIs”) with assistance in complying with the accounting and regulatory requirements resulting from delivering loans to the Federal Home Loan Banks (“FHLBanks”) under the Mortgage Partnership Finance® (“MPF”) Program. It begins with a brief description of the FHLBanks and the MPF Program; summarizes the products offered under the MPF Program; provides guidance on accounting for interest rate lock commitments and forward sales commitments; addresses the accounting and regulatory requirements for mortgage servicing rights (“MSRs”); and provides accounting and regulatory advice on the MPF credit enhancement by type of product.

The handbook was written by Wilary Winn, LLC, which is solely responsible for its content. The guidance herein has not been approved by any of the FHLBanks. It is not intended for use with the Mortgage Purchase Program or the Mortgage Asset Program. The “MPF Mortgage Partnership Finance” logo, “Mortgage Partnership Finance,” “MPF,” and “MPF Xtra” are registered trademarks of the FHLBank of Chicago.

References to call report schedules are current as of the publication date and may change as reporting forms are periodically revised. See the Call Report References for Loans Sold with Servicing Retained white paper on the Wilary Winn website for additional details related to the FFIEC 041, FFIEC 051, and NCUA call report requirements and references.

How Can We Help You?

Founded in 2003, Wilary Winn LLC and its sister company, Wilary Winn Risk Management LLC, provide independent, objective, fee-based advice to over 670 financial institutions located across the country. We provide services for CECL, ALM, Mergers & Acquisitions, Valuation of Loan Servicing and more.