The MPF Program  recently surpassed $1 billion in mortgage-backed securities (MBS) issued. The MPF Government MBS product was the result of a partnership forged by the Federal Home Loan Bank of Chicago  and Ginnie Mae to issue securities guaranteed by Ginnie Mae  and backed by mortgages originated by FHLB member financial institutions.
The product provides mortgage lenders, particularly smaller institutions, direct access to the secondary mortgage market, and more options when creating mortgage products for their home-buying customers.
The MPF Government MBS product was initially made available only to eligible participating members of the Federal Home Loan Bank of Chicago and has now expanded to six Federal Home Loan Banks that can now offer the MPF Government MBS product to their members.
“The interest in the MPF Government MBS product continues to grow helping to make more affordable lending available throughout the country,” said John Stocchetti, EVP of the MPF Program. The MPF Program's partnership with Ginnie Mae continues to provide lenders a channel to the MBS marketplace and the ability to choose whether to retain or release servicing on the government loans they originate.
Ginnie Mae developed the first mortgage-backed security in 1970 which allowed for loans to be pooled in a security that could be sold in the secondary market. “This partnership with the Federal Home Loan Bank of Chicago is just the beginning of the productive partnerships that Ginnie Mae's charter allows and that we intend to leverage in the coming years,” said Michael Bright, EVP and COO at Ginnie Mae. “These types of programs help to level the playing field for small and local financial institutions, help Ginnie Mae fulfill its core mission, and creates important opportunities for innovation in our mortgage system.”