Capital Briefs: Pittsburgh Home Loan Bank to Buy Loans

The Federal Home Loan Bank of Pittsburgh last week became the fifth Home Loan bank to join the Mortgage Partnership Finance program.

Under the program, originated by the Chicago Home Loan Bank in 1997, Home Loan banks buy mortgages from member banks and thrifts, which continue to service the credits. The Home Loan bank assumes the risks associated with interest rates and prepayments.

The program, which now has more than $1.2 billion in outstanding loans, is designed to compete with secondary market makers Fannie Mae and Freddie Mac.

In addition to the Chicago and Pittsburgh banks, Home Loan banks in Dallas, Atlanta, and New York have joined the program.

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