WASHINGTON – The Mortgage Partnership Finance Direct program will now accept larger jumbo mortgages and a wider variety of products including hybrid adjustable-rate mortgages, the Federal Home Loan Bank of Chicago and Redwood Trust said Monday.
The partners said that the program would accept jumbos of up to $2.5 million, a boost from the previous $1.5 million limit.
"By raising the loan limit and amending eligibility to include hybrid ARMs, the MPF Direct product will provide additional flexibility to members of the Federal Home Loan Bank System who wish to sell loans into the secondary market," Redwood Trust President Christopher Abate said in a press release.
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Redwood Trust is "repositioning" its mortgage business by focusing mainly on jumbo loans, according to its top executives.
February 29 -
WASHINGTON Four more Federal Home Loan Banks have won regulatory approval to participate in a program that allows member institutions to sell jumbo mortgage loans through a conduit to Redwood Trust.
August 14 -
WASHINGTON Four Federal Home Loan Banks have recruited 74 members to participate in their new Mortgage Partnership Finance jumbo loan program.
November 11
The MPF Direct program allows members of six participating Home Loan banks to deliver jumbo mortgages through the MPF platform to a subsidiary of Redwood Trust.
"We continue to broaden opportunities for FHLBank members to realize benefits from the MPF Direct product with the intention to help them—community lenders—remain competitive," said John Stocchetti, executive vice president and group head of the MPF Program.
Currently, 177 financial institutions have signed up to participate in the program, including 37 in the first quarter of this year. Only 42 members have actually sold jumbos to Redwood through MPF Direct.
Six Home Loan banks have been approved by their regulator to offer the MPF Direct product: Atlanta, Boston, Chicago, Des Moines, Pittsburgh and San Francisco.
