How does the delivery-commitment process work under the MPF program?
After rate-lock or origination of a loan, a member will select a delivery-commitment date using the MPF pricing sheet. The delivery commitment is entered into by authorized personnel utilizing the eMPF Web site or by telephone. The delivery commitment is mandatory, meaning that the member will be subject to “pair-off” costs if the loan is not delivered into the commitment. How is a member funded for a loan under MPF? Loans are funded on the Web site in a straightforward process. A loan funding can be done on a loan-by-loan basis or through a pool of loans with a similar coupon (for example, 25 basis points up or down). After selecting the funding date, FHLB Boston places the funds in the member’s IDEAL Way account. How does the master commitment work? A master commitment in the MPF program is a best-efforts agreement. It sets forth the terms under which loan sales will take place, plus key information such as total master commitment amount (limit on loans sold), expiration date, remitt