CHICAGO, March 8, 2012 /PRNewswire/ -- The MPF®Program is proud to be a continuing supporter of the Independent Community Bankers of America and an exhibitor at their National Convention and Techworld in Nashville, Tennessee, next week. By providing access to the secondary mortgage market, the MPF Program partners every day with community lenders across the country helping lenders to offer both conforming conventional and government loan products. Since community lenders know their customers and understand the local market conditions, they can ensure their customers receive mortgages appropriate for their financial situations.
MPF Volumes Surpass Expectations in 2011
Community lenders that are a member of a Federal Home Loan Bank and participate in the MPF Program funded more than 45,000 loans totaling almost $7 billion in 2011. Of the 672 lenders, 628 were community banks, thrifts, and credit unions with less than $1.040 billion in total assets.
"We far exceeded our expectations in 2011," said Eric Schambow, Senior Vice President and Director of the MPF Program. "Community lenders worked with their borrowers to match them with the right mortgages for their financial circumstances. It shows that the MPF Program really does help the small and mid-size lenders who originate small pools of loans. It allows them to compete on a more level playing field, and we are extremely pleased."
New Servicing Released Option Available
The MPF Program is also pleased to announce that it has partnered with Prospect Mortgage to begin offering the servicing released option to lenders interested in realizing the value of their servicing rights upfront for loans sold under the MPF Xtra® product. This flexibility allows lenders to take advantage of current, favorable market conditions and meet their balance sheet needs without the expense of the infrastructure to service the loans they originate.
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.
SOURCE MPF Program