Chicago Seeks More FHLBs to Join MPF Xtra Program
A Federal Home Loan Bank funding conduit called MPF Xtra that funnels conventional single-family mortgages to Fannie Mae has seen its loan volume triple in the past year.
During the first three quarters of this year, the Chicago FHLB processed $4.5 billion of MPF Xtra loans for Fannie, compared to $1.5 billion during the same period in 2011.
Currently, five FHLBs (Chicago, Boston, Des Moines, Pittsburgh and Topeka) offer their members access to the Mortgage Partnership Finance Xtra program. The Topeka FHLB is the newest member.
“There are now five FHLBanks out of 12 participating in the MPF Xtra product, and we are looking to add more as the MPF program grows,” the Chicago FHLB says in its third-quarter securities filing.
In the third quarter, 521 member banks and thrifts of the five participating FHLBs originated $2 billion of MPF Xtra loans. Members of the Chicago FHLB originated half of those loans.
The Chicago FHLB created the MPF Xtra program and acts as the master servicer for all the loans sold to Fannie Mae.