The Federal Home Loan Bank of Chicago is still working on a plan to move its Mortgage Partnership Finance program off its balance sheet, but the restructuring is not expected to make the mortgage purchase program more profitable."Income from the off-balance-sheet MPF business is expected to be less than the income generated under the current business model," according to the Chicago FHLBank's third-quarter financial report. The $88.9 billion-asset FHLBank reported third-quarter earnings of $42 million in the third quarter, down 6.7% from those of the same period last year. The MPF program generated $31 million of the earnings in the third quarter. Meanwhile, the bank is buying back excess stock as required by a supervisory agreement. It is also purchasing mortgage-backed securities to generate interest income. The bank can be found online at http://www.fhlbc.com.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry