Mortgage Partnership Finance program

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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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Statements (35)

Predicate Object
instanceOf housing finance initiative ⓘ
secondary mortgage market program ⓘ
administeredBy Federal Home Loan Banks ⓘ
allows member institutions to retain servicing of sold loans ⓘ
alsoKnownAs MPF program ⓘ
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 ⓘ
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 ⓘ
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 ⓘ
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 ⓘ