HSBC Bank USA of Buffalo and Provident Bank of Montebello, N.Y., have started to originate their home loans through the Mortgage Partnership Finance Program with the Federal Home Loan Bank of New York.

The program, a risk-sharing arrangement, lets lenders who are members of a participating Home Loan bank originate and service loans for which the Home Loan bank manages funding, interest rate, liquidity, and prepayment risks. Lenders do not pay guarantee fees to the Home Loan bank as they do when they sell to Fannie Mae and Freddie Mac, the two largest buyers of home loans in the secondary market.

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