Mortgage Partnership Finance program

E429896

The Mortgage Partnership Finance program is a secondary market initiative that enables member financial institutions to sell qualifying residential mortgage loans to the Federal Home Loan Bank system while retaining servicing and sharing in the credit risk.

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Mortgage Partnership Finance program canonical 1

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Predicate Object
instanceOf housing finance initiative
secondary mortgage market program
administeredBy Federal Home Loan Banks NERFINISHED
allows member institutions to retain servicing of sold loans
alsoKnownAs MPF program NERFINISHED
benefitToMembers access to competitive mortgage pricing
capital and liquidity management tool
reduced interest rate risk on mortgage portfolios
counterpartyType banks
credit unions
thrifts
distinguishedFrom mortgage securitization through government-sponsored enterprises
traditional whole-loan sales without risk sharing
enables sale of qualifying residential mortgage loans to Federal Home Loan Banks
feature credit risk sharing between member institutions and Federal Home Loan Banks
off-balance-sheet treatment for sold loans subject to accounting rules
servicing-retained mortgage sales
focusesOn conforming first-lien residential mortgage loans
geographicScope United States NERFINISHED
marketRole secondary market execution for residential mortgages
objective enhance mortgage funding options for member institutions
provide liquidity to member financial institutions
support homeownership through stable mortgage funding
primaryParticipants Federal Home Loan Banks NERFINISHED
member financial institutions
regulatoryContext operates within U.S. housing finance and banking regulations
relatedTo Federal Home Loan Bank System mortgage purchase programs
riskStructure credit enhancement provided by member institutions
credit risk sharing with Federal Home Loan Banks
sector residential mortgage finance
sponsoredBy Federal Home Loan Bank System NERFINISHED
supports fixed-rate residential mortgage products
servicing income retention for participating lenders
uses standardized loan delivery and documentation requirements
standardized mortgage underwriting guidelines

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Federal Home Loan Bank of Chicago hasProgram Mortgage Partnership Finance program