The Mortgage Partnership Finance^® (MPF^®) Program has expanded eligibility for its MPF Traditional products, enabling participating FHLBank member financial institutions to sell additional types of qualifying mortgages that support affordable and sustainable homeownership. The enhanced guidelines include qualifying mortgages originated through affordable lending programs, loans for manufactured homes, home improvement and renovation financing, and lender-funded affordable housing assistance programs. The changes reflect feedback from member institutions and more closely align MPF Traditional eligibility with current mortgage market standards.

"These expanded guidelines provide the flexibility member institutions need to serve underserved borrowers in their communities and support affordable homeownership." said Thomas Hazlett, Senior Vice President of Mortgage Lending at New Market Bank

The expanded eligibility encompasses low-income borrower programs, allowing qualifying mortgages for borrowers who meet applicable income requirements to have loan-to-value ratios of up to 97%. Manufactured housing now includes single-width homes with 30-year mortgage terms, flexible down payment sources including land-in-lieu and gift funds, and secondary financing options. Home improvement and renovation loans are eligible when the property is appraised based on its as-completed value and renovations are finished before the loan is sold through the MPF Program. Lender-funded affordable housing assistance programs for low-income borrowers and neighborhoods are now incorporated into MPF Traditional eligibility, extending member participation into community development and affordable housing initiatives. These lender-funded programs are separate from the Affordable Housing Program administered by the Federal Home Loan Banks.

"The MPF Program listened to its members and acted on their feedback," said Thomas Hazlett, Senior Vice President of Mortgage Lending at New Market Bank, Lakeville, Minnesota, whose institution participates in the MPF Program. "These expanded guidelines provide the flexibility member institutions need to serve underserved borrowers in their communities and support affordable homeownership. The enhancements directly address loan types lenders asked the MPF Program to accommodate and give participating institutions more options to support affordable homeownership."

The expanded guidelines build on over two decades of MPF Program evolution. Member feedback has consistently shaped MPF product enhancements. These expanded guidelines reflect the same principle by responding to members’ needs and allowing them to sell a broader range of qualifying mortgages through the MPF Program.