FHLB Chicago MPF · Program Announcement MPF Announcement 2026-22 · Published

Expanded Eligibility and Guidelines for MPF Traditional Products

FHLB Chicago announced revisions to MPF Traditional selling guidelines to expand product parameters. Key updates include permitting 97 percent loan-to-value agency affordable loans subject to a mortgage insurance overlay, broadening manufactured housing standards, and updating commitment terms.

Action requiredIn effect nowChecks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · needs review

Applies to: Loans delivered under the MPF Traditional program, including designated agency affordable offerings and manufactured housing.

Addressed to
MPF participating financial institutions (PFIs)From the publisher, not quoted from the text
Investor
MpfFrom the publisher, not quoted from the text
Affected areas
Eligibility; EligibilityGuide Section 2.6.11
Affected documents
Private mortgage insurance certification; real estate appraisal report
Applicability confidence
Needs review: some rows could not be matched to a quote from the source

Summary by AWACS. FHLB Chicago MPF's guide is proprietary, so AWACS does not reproduce its text. Read the official announcement ↗ (opens in a new tab)

What changed

Summarized from the announcement · Sections 2.6.11, 6.8, 2.6.3.4
RequirementPreviouslyNow
Mortgage insurance coverage restriction on high-LTV agency productsTightenedRequiredSection 2.6.11New requirementLoans must satisfy automated underwriting standard insurance coverage and cannot utilize reduced coverage paired with pricing adjustments.
Maximum financing ratios for specified agency affordable offeringsRelaxedSection 2.6.11Not statedFinancing ratios up to 97 percent are permitted for designated Fannie Mae and Freddie Mac affordable programs.
Manufactured housing financing terms and parametersRelaxedSection 6.8Previously: Permitted mortgage amortization terms were restricted to 20 years.Guidelines now permit single-width units, 30-year loan terms, subordinate financing, and flexible down payment options.
Master commitment allocation limit for factory-built homesChangedSection 6.8Not statedManufactured homes are restricted to a maximum of 15 percent of an overall master commitment.
Delivery requirements for renovation and property repair loansClarifiedSection 2.6.3.4Not statedRehabilitation mortgages are acceptable when properties are valued as completed and work is finished prior to sale.

What to do

AWACS interpretation · not source language

What to review: Review the mandatory mortgage insurance coverage restriction prohibiting reduced coverage on high-LTV agency loans first, followed by expanded options for 97 percent financing and manufactured housing terms.

Underwriting

Enforce standard automated underwriting mortgage insurance coverage immediately on qualifying high-LTV agency loans, ensuring reduced coverage paired with pricing adjustments is not utilized.

QC implications

  • Audit high-LTV agency affordable files to ensure standard mortgage insurance coverage levels are maintained without reduced coverage pricing tradeoffs.
  • Sample manufactured home deliveries to confirm they do not exceed the 15 percent master commitment threshold, and confirm any renovation loans have all required work completed before sale.

Source and record

Version 1 · archived

Checks

  • Source verified: Passed

    The document ID, link and publication date match the official source.

  • Quotes match the source: Passed

    Every quoted passage appears word for word in the official document.

  • Requirements backed by the source: Passed, adjusted automatically

    Anything marked required is backed by the requirement language and dates in the source.

    • A detail the source does not support was removed or adjusted
    • An independent check could not confirm a requirement; it is shown as review, not action
  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed

    The record follows the AWACS format and uses its standard labels.