Ginnie Mae venture with Chicago FHLB crosses mortgage milestone
WASHINGTON — A mortgage program created by a 2015 partnership between the Federal Home Loan Bank of Chicago and Ginnie Mae recently crossed a milestone with over $1 billion in government-backed mortgages securitized through the venture, the partnership announced Wednesday.
Six of the 11 regional Federal Home Loan banks around the country currently participate in the Mortgage Partnership Finance program. The Chicago bank venture pools and securitizes Federal Housing Administration, Department of Veterans Affairs and Rural Housing Service guaranteed loans via Ginnie Mae.
"The interest in the MPF Government mortgage-backed securities product continues to grow helping to make more affordable lending available throughout the country," John Stocchetti, executive vice president of the finance program, said in a press release issued by the Chicago Home Loan bank and Ginnie Mae.
The partnership provides Federal Home Loan Bank System member banks, thrifts and credits unions with a channel to the mortgage-backed securities market and the ability to choose whether to retain or release the servicing on the loans they originate.
The Chicago bank securitized its first pool of government-backed loans through Ginnie Mae in July 2015, totaling $5 million.
The partnership with the Home Loan bank is "just the beginning of the productive partnerships that Ginnie Mae's charter allows and that we intend to leverage in the coming years," Michael Bright, Ginnie's chief operating officer, said in the press release.
"These types of programs help to level the playing field for small and local financial institutions, help Ginnie Mae fulfill its core mission, and create important opportunities for innovation in our mortgage system," Bright said.