FHLBank MPF Program Allies With USDA

The Mortgage Partnership Finance program of the Federal Home Loan Banks has announced a new partnership with the U.S. Department of Agriculture's Rural Development Program.Under the arrangement, approved FHLBanks participating in the MPF program can purchase RHS Section 502 government-guaranteed loans from qualified members, including commercial banks, thrifts, credit unions, and insurance companies. USDA Rural Development Guaranteed Loans are offered to qualifying low- and moderate-income families to purchase or refinance homes in rural areas with a population of less than 10,000 and non-metropolitan communities with populations of 10,000-25,000, the MPF reported. The partnership enables the FHLBank of Chicago, which pioneered the MPF program, and the FHLBank of Pittsburgh to buy such loans from their members as "a competitive alternative to the secondary mortgage market." The MPF program can be found online at http://www.fhlbmpf.com, and the Rural Development Program can be found at http://www.rurdev.usda.gov.