WASHINGTON — The Federal Home Loan banks of Topeka and San Francisco have signed up to participate in a Mortgage Partnership Finance program that pools and securitizes government-backed loans through Ginnie Mae.
"We now have a new option for selling your government mortgage loans into the Mortgage Partnership Finance program," the Topeka bank told its member institutions in a memo Monday.
"MPF Government MBS product is geared to make you successful with competitive pricing in both servicing retained and released options," the memo says, referring to mortgage-backed securities.
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Nationstar will provide servicing-released option for fledging Chicago's MPF Government MPF program.
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The new MBS program gives FHLB members direct access to the secondary market.
July 21 -
After imposing a virtual moratorium on adding new issuers, Ginnie Mae is again accepting applications from mortgage companies seeking to pool loans for securitization and servicing.
February 29
The Federal Home Loan Bank of Chicago created and continues to run the MPF program. The Chicago and Atlanta banks have sold the most loans through the program, which is also used by the Boston bank. The San Francisco bank has also joined.
"As we looked at the program, we really liked the execution and the pricing that it provides," said Dan Hess, the Topeka bank's chief business officer.
Interested members can sign up to receive daily MPF pricing so that they can compare it against other alternatives, Hess said Tuesday.
The program allows for the sale and securitization of Federal Housing Administration, Department of Veterans Affairs and Rural Housing Service loans.
The Chicago bank issued its first pool of government-backed loans in July 2015, totaling $5 million. Through May the MPF government mortgage-backed securities program had securitized $271 million in single-family loans, according to Melissa Warden, a spokeswoman for the Chicago bank.
"We are excited about the growth of the program and anticipate that it will continue," Warden said.
