Apppeals Court: Home Loan Bank's Secondary Market Program Is Legal
NEW ORLEANS - The United States Court of Appeals for the Fifth Circuit has upheld the legal basis of the Chicago Federal Home Loan Bank's alternative secondary market program, the Mortgage Partnership Finance program.The program provides lenders with an alternative to Fannie Mae and Freddie Mac when they sell their loans on the secondary market. Home Loan banks buy the loans.
On Jan. 20 the court affirmed the trial court's decision in the case of Texas Savings and Community Bankers Association et al. v. Federal Housing Finance Board.
The Texas group of lenders had contended that the finance board had overstepped its authority by removing power from the Federal Home Loan Banks. They argued that the "government-sponsored program impermissibly competes with the private sector."
The Federal Home Loan Bank of Chicago said the appeals court's decision is "a victory for innovation and competition" and "ensures this program will continue its national expansion."
Production Chief Becomes CEO Of Union Planters Loan Division
MEMPHIS - Union Planters Corp. has named Douglas R. Miller president and chief executive officer of its mortgage subsidiary.Mr. Miller, 50, has been head of mortgage production at the company for the past two years. He succeeds Joel R. Katz, who is moving to New York to be with his family.
The $33 billion-asset company also named Mark E. Mosteller executive vice president and chief operating officer of the mortgage operations, a new position.
- Louis Whiteman