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 via 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.
The Chicago Home Loan Bank created and continues to run the MPF program. The Chicago and Atlanta FHLBs 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 Topeka FHLB Chief Business Officer Dan Hess.
He said Tuesday that interested members can sign up to receive daily MPF pricing so they can compare it to other alternatives.
The MPF program allows for the sale and securitization of Federal Housing Administration, Department of Veterans Affairs and Rural Housing Service loans.
The Chicago FHLB issued its first pool of government-backed loans in July 2015, totaling $5 million. So far, the MPF Government MBS program has securitized $271 million in single-family loans as of May 31, according to CFHLB spokeswoman Melissa Warden.
"We are excited about the growth of the program and anticipate that it will continue," Warden said.
