The Mortgage Partnership Finance program developed by the Chicago Federal Home Loan Bank has morphed into a mortgage conduit program that has delivered nearly $3.4 billion in single-family loans to Fannie Mae. The Chicago bank launched the controversial MPF program in 1997 to purchase loans from FHLBank members and compete with Fannie and Freddie Mac. Other FHLBanks participated in the MPF program. Under financial and supervisory restraints, the Chicago FHLBank stopped purchasing MPF loans in August 2008 and introduced a MPF Xtra loan product that it could sell to Fannie. Since its introduction in the fourth quarter of 2008, the Chicago bank has sold $3.4 billion in MPF Xtra loans to Fannie, according to the 12 Federal Home Loan Banks' annual combined financial report. The Boston, Des Moines, New York, Pittsburgh and Topeka FHLBanks also offer the MPF Xtra product to their members.
Chicago MPF Program Morphs
Published March 31, 2010, 1:00 p.m. EDT
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