Federal Home Loan Bank of Boston’s Mortgage Partnership Finance^® (MPF^®) Program

The MPF Program allows Federal Home Loan Bank of Boston (FHLBank Boston) members to sell residential mortgages directly to FHLBank Boston. As market dynamics change, members may decide to sell mortgages to free up cash for alternative investments, and the MPF Program can help support this strategy by offering options for both seasoned and current loans. Selling mortgages to the MPF Program is easy, and FHLBank Boston staff provide all the training and support you will need when preparing to sell.

As in typical sales transactions, a price is paid at delivery. However, unlike other sales transactions, members participating in MPF, known as Participating Financial Institutions (PFIs), maintain some underlying credit exposure to loans sold – a Credit Enhancement (CE) Obligation. In exchange for sharing some of the risk, the PFI is paid CE income over the life of the loan. This has the potential to increase the all-in return on the sale of the loans. Plus, the MPF Program requires no loan level price adjustments (LLPAs) and no minimum deliveries.

To further support PFIs and expand affordable homeownership opportunities for their customers, FHLBank Boston offers a Permanent Rate Buydown (PRB) product. The PRB product enables PFIs to offer a reduced mortgage interest rate to borrowers earning up to 80% of area median income (AMI). The rate is up to two percentage points below the current market rate on purchase transactions for owner-occupied properties in New England. FHLBank Boston pays the PFI a premium of 1.25% on loans sold through this product, using a voluntary subsidy to make up the difference between a below-market rate loan and the 101.25 price. Additional conditions apply, and the product is available until the allocated subsidy is exhausted.

In 2025, the Permanent Rate Buydown product resulted in 245 loans totaling $74 million to lower-income borrowers who saved thousands of dollars in principal and interest payments with a below-market interest rate. Seventy-eight percent of the loans purchased in 2025 were for first-time homebuyers, and the average interest rate was 5%.

In addition, FHLBank Boston now has a best-efforts delivery option and offers improved pricing for PFIs for loans to borrowers with income at or below 80% of AMI, separate from the PRB product, through the housing impact pricing grids.

For more information about the MPF Program, please contact MPF Program Manager Jennifer Cowles or your FHLBank Boston relationship manager.

“Mortgage Partnership Finance,” “MPF” and “MPF Mortgage Partnership Finance” logo are registered trademarks of the Federal Home Loan Bank of Chicago.