MPF Program Volume Rises 41% in 3Q

The Federal Home Loan Banks' Mortgage Partnership Finance program funded $2.6 billion of loans in the third quarter, up 41% from the total of the previous quarter.The FHLBank of Chicago, which coordinates the MPF program, also reported that 939 FHLBank member financial institutions are approved to fund such loans, a gain of 20 for the quarter. MPF assets funded since the program's inception totaled $158.5 billion in the third quarter, the bank reported. Under the MPF program, the risks of long-term, fixed-rate mortgage lending are shared between mortgage lenders and their regional FHLBank, with the former handling the credit risk and the customer relationship and the latter bearing the interest rate risk. The program can be found on the Web at http://www.fhlbmpf.com.