Seattle FHLBank Teams Up With Servicer

The Seattle Federal Home Loan Bank has teamed up with a mortgage servicer to enable participants in its Mortgage Purchase Program to sell their loans on a servicing-released basis.This new MPP feature will allow participating banks and thrifts to sell their one- to four-family loans to the FHLBank and concurrently sell the servicing rights to Principal Residential Mortgage Inc., Des Moines, Iowa. "As a member-owned cooperative, we're always looking for ways to add value to our products and services," said Seattle FHLBank executive vice president David Bley. "With servicing released, our financial institution members have another choice in managing their mortgage business." In connection with the announcement, the Seattle bank is launching a marketing campaign to encourage more members to participate in the MPP. The FHLBank has funded over $10 billion loans since the MPP was started three years ago.