Fannie to Purchase FHLB-Chicago Member Loans

Fannie Mae has agreed to purchase mortgages originated by members of the Chicago Federal Home Loan Bank and it opens the door for other FHLBanks that participate in Chicago's Mortgage Partnership Finance program to sell loans to Fannie. "Our partnership with Fannie Mae facilitates access to the secondary market through the familiar structure of the MPF program. Most importantly, this program will make it easier for the majority of our members to continue to offer competitively priced fixed-rate mortgages to their customers in their communities," Chicago FHLBank president Matt Feldman said. Due to financial troubles, the Chicago bank stopped purchasing mortgages from its community bank members in August and the Des Moines, Pittsburgh and Topeka FHLBanks stepped in to purchase mortgages from Chicago members. The new government-sponsored enterprise regulator, the Federal Housing Finance Agency, approved the Fannie/Chicago FHLBank partnership.