DALLAS and CHICAGO, April 4, 2013 /PRNewswire/ -- The Federal Home Loan Bank of Dallas has announced it has joined the Mortgage Partnership Finance® (MPF®) Program and is now offering the MPF Xtra product, a move that will allow qualifying members to sell fixed-rate, conforming mortgage loans into the secondary market. Through MPF Xtra, home loans are aggregated and sold to Fannie Mae, giving small and mid-sized lenders the ability to maintain customer relationships and compete effectively in the mortgage lending market while avoiding interest rate, prepayment, and credit risks normally associated with long-term, single-family loans.
"We're delighted to offer community lenders in our region the opportunity to leverage the strength of FHLB Dallas to help families buy new homes or lower the price of their current homes," said Bank President and CEO Terry Smith. "The beauty of MPF Xtra is that it lets smaller lenders provide the same competitively priced loans as larger banks while keeping the personal, local touch their customers appreciate. They can even continue to service the loans if they choose, so it's the best of both worlds."
FHLB Dallas joins six other Federal Home Loan Banks that offer the MPF Program: Boston, Chicago, Des Moines, New York, Pittsburgh, and Topeka. "We couldn't be more pleased that the Dallas Home Loan Bank is offering this benefit to its members," said Eric Schambow, Senior Vice President and Director of the MPF Program at FHLB Chicago. "In fact, MPF Xtra loan volume more than doubled in 2012. We think this rise in popularity speaks for itself, and with FHLB Dallas on board, we look for it to continue."
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $35.2 billion as of September 30, 2012, is a member-owned cooperative that supports housing and community development by providing competitively priced advances and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the FHLB Dallas website at www.fhlb.com.
About the MPF Program
The MPF Program was created in 1997. To participate in the MPF Program, a financial institution must be a member of a Federal Home Loan Bank (FHLBank) that offers the MPF Program. Currently, new loan purchases are available through the following FHLBanks: Boston, Chicago, Dallas, Des Moines, New York, Pittsburgh, and Topeka.
The U.S. Congress created the FHLBank System in 1932. The System comprises 12 FHLBanks across the country. Each FHLBank is cooperatively owned by member financial institutions and managed by its own Board of Directors.
"Mortgage Partnership Finance," "MPF," and "MPF Xtra" are registered trademarks of the Federal Home Loan Bank of Chicago. The "MPF Mortgage Partnership Finance" logo is a trademark of the Federal Home Loan Bank of Chicago.
SOURCE MPF Program