More Community Lenders Funding Home Loans with Help from the Mortgage Partnership Finance® Program

Total Loan Volume Doubled in 2012

Jan 16, 2013, 10:05 ET from MPF Program

CHICAGO, Jan. 16, 2013 /PRNewswire/ -- The Mortgage Partnership Finance® Program saw a dramatic increase in participation in 2012 as community lenders sought to compete with larger banks in the mortgage lending market, maintain customer relationships, and minimize risk. The number of participating community lending institutions grew 15% over the previous year to a total of nearly 800, but the most striking increase was in loan volume: Member institutions funded $14.33 billion in loans in 2012 – more than double the volume seen in 2011 – using the MPF Program, which allows participating financial institutions to sell fixed-rate, conforming loans into the secondary market. Of that volume, almost $7 billion was in the MPF Xtra® product, through which the loans are concurrently sold to Fannie Mae.

By aggregating home loans, the MPF Program allows small and mid-sized lenders across the country to provide mortgages that would otherwise be available only from larger banks, while retaining the option to service the loans locally.

"Our continued focus on customer service has definitely contributed to the popularity of this program product," said Eric Schambow, Senior Vice President and Director of the MPF Program. "The MPF Program lets community lenders offer their customers home loans at a competitive price, which means borrowers can continue to work with their local lending institutions they know and trust, and Federal Home Loan Bank (FHLB) Members can take advantage of their existing relationship with their FHLB." One benefit of this relationship is the high level of support FHLB Members receive when they use the products, including customized onsite technical training, a toll-free product-expert hotline, complimentary monthly webinars, and access to Fannie Mae's Desktop Underwriter®, an automated credit risk assessment tool.

Funding Year

MPF Program Total

MPF Xtra Product


$14.33 billion

$6.94 billion


$6.99 billion

$2.81 billion

MPF Program to Exhibit at the 2013 ABA National Conference for Community Bankers
Look for the MPF Program at the 2013 ABA National Conference for Community Bankers in Orlando, Florida from February 17-20. The MPF Program has exhibited at the conference for more than a decade.

About the MPF Program
The MPF Program was created in 1997. Since then, the MPF Program has helped more than 1,200 financial institutions fund more than 1.3 million loans for families across America to purchase new homes or lower the cost of their existing homes.

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, 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.