Mortgage Slowdown Depresses Earnings AtChicago FHLB
CHICAGO - (07/26/04) -- The Federal Home Loan Bank ofChicago, the originator of the secondary market MortgagePartnership Finance program, said net income for its second quarterslumped 4% to $94.2 million, from $98.5 million for the same periodlast year, as growth in its MPF program slowed dramatically. As aresult, net income for the first six months of the year declined14% to $169 million, from $195.6 million for the first half lastyear. Growth in the secondary market program, slowed to just 4% forthe first half, down from double-digit growth the past few years, areflection of the slowdown in the mortgage market. The Chicagobank, which represents 707 members, including 57 credit unions,paid a 6% dividend on its stock for the second quarter, the same asfor the first quarter.