SAN FRANCISCO The Federal Home Loan Bank of San Francisco will recommence participation in the Mortgage Partnership Finance Program and again purchase conventional, conforming, fixed-rate mortgage loans and FHA/VA-insured mortgage loans from member credit unions and banks in California, Arizona and Nevada.
The Bank participated in the secondary market program until 2006, when troubles began to surface in its portfolio and other FHLBs, prompting a termination of the program.
The FHLB San Francisco also will facilitate the purchase of member-originated fixed rate mortgage loans for concurrent sale to Fannie Mae under the MPF Xtra product.
The reentry into the secondary market for the San Francisco FHLB comes amid a continuing lack of outlets for credit unions to sell their mortgages. Fannie Mae and Freddie Mac now buy more than 90% of all single family residential loans originated by credit unions and banks, with virtually no participants from non-government entities.
"Renewing our participation in the MPF Program will allow us to offer members a price-competitive alternative secondary market channel for their mortgage originations," said Dean Schultz, president of the Federal Home Loan Bank of San Francisco. "It also will allow us to increase our core mission assets and offer a new tool, through the MPF Government product, to help low-income and moderate-income homeowners and first-time homebuyers."
FHLBank San Francisco joins eight other Federal Home Loan Banks that offer the MPF Program: Boston, Chicago, Dallas, Des Moines, New York, Pittsburgh, Seattle and Topeka.
