FEDERAL BANK OF CHICAGO HOME LOAN AND GINNIE MAE REACH $3 BILLION IN MPF® GOVERNMENT MBS
CHICAGO, June 29, 2022 /PRNewswire/ — The Federal Home Loan Bank of Chicago (FHLBank Chicago) and the Government National Mortgage Association (ginnie mae) today announced that the total issuance under Mortgage Partnership Finance® Program (MPF®) has recently exceeded $3 billion in mortgage-backed securities (MBS). The MPF Government MBS product is the result of a partnership forged between FHLBank Chicago and ginnie mae issue securities guaranteed by ginnie mae and secured by mortgages issued by member financial institutions of the Federal Home Loan Bank. The MPF Government MBS product provides mortgage lenders, especially smaller institutions, with direct access to the secondary mortgage market and more mortgage solution options for their valued customers.
ginnie mae developed the first mortgage-backed security in 1970, by bundling loans into one security sold in the secondary market.
“The MPF program is an important partnership in making the Ginnie Mae MBS system accessible to small community banks and lending partners, and this $3 billion milestone demonstrates its value in the marketplace,” said Ginnie Mae, President Alanna McCargo. “This program advances our mission and commitment to ensuring the liquidity of government mortgage products and creating more equitable and affordable homeownership opportunities for households across the country.”
Federal mortgage banks across the country offer the MPF Government MBS product to their members.
“As the MPF program celebrates 25 years of helping community lenders nationwide, reaching this milestone with ginnie mae is another testament to our continued strong partnership,” said Jean Stockchetti, executive vice president of the MPF program. “Our business model gives community lenders access to the secondary market, and our relationship with these lenders gives their communities access to affordable mortgage products.”
The partnership of the MPF program with ginnie mae started in 2014 and continues to provide lenders with a channel to the MBS market.
About the MPF program
The MPF program allows eligible Federal Home Loan Bank members to sell compliant conventional and government loans to their Federal Home Loan Bank or other investors. To find out more visit fhlbmpf.com. “Mortgage Partnership Finance” and “MPF” are registered trademarks of the Federal Home Loan Bank of Chicago.
About ginnie mae
ginnie mae is a 100% Crown-owned corporation that attracts global capital into the housing finance system to support home ownership for veterans and millions of homeowners across the country. Ginnie Mae MBS programs directly support housing finance programs administered by the Federal Housing Administration, Department of Veterans Affairs, Department of Housing and Urban Development’s Public and Indian Housing Service, and Department of Agriculture Rural Housing Service. ginnie mae is the only MBS to bear the full explicit faith and credit of United States government.
SOURCE Federal Home Loan Bank of Chicago