An alternative secondary market program started in 1997 by the Federal Home Loan Bank of Chicago reached $1.8 billion in loans outstanding at yearend, an 87% increase from a year earlier.
Mortgage Partnership Finance registered future volume commitments of $6.6 billion, a 697% increase from $829 million in 1998. Six federal home loan banks are part of the program - Atlanta, Chicago, Dallas, Des Moines, New York, and Pittsburgh. Two others - in Boston and Topeka, Kan. - have applied to join, according to the Federal Housing Finance Board. Established to compete with Fannie Mae and Freddie Mac, the coalition itself could face competition from an initiative by home loan banks in Seattle, Cincinnati, and Indianapolis.