| PFI Conversation: Talking with the Hometown Bank with the Hometown Touch |
 MPF In Focus recently talked with Ed Drexler, Vice President and Secondary Market Operations Manager at Marquette Savings Bank in Erie, Pennsylvania. Marquette runs a tight ship with 120 employees in 12 locations and has $760 million in assets. Since 2007, Marquette has used the MPF Program and the Original MPF product exclusively. Here’s why.
Q: Describe the circumstances that led Marquette Savings Bank to seek access to the secondary market.
A: Marquette had traditionally been a mortgage lender and held the loans we originated on our
balance sheet. Interest rate risk was something we had to watch closely. In the past 10 years
we expanded our products to include business banking.
Q: What was the tipping point?
A: When rate scenarios got so low in 2005 and 2006, we could not offer mortgages at a competitive price. We lost customers, and this bothered our Board. Our slogan is, ‘The Hometown Bank with the Hometown Touch.’ We wanted to remain competitive during any rate environment. With the MPF Program, we can compete now with anyone.
Q: Why did you choose the MPF Program specifically?
A: One of the big reasons is that we want to service our loans. We’ve always held our hat on that. Now our customers are not only getting low interest rates, but everything is from us—including their statements and closing documents. It’s transparent to the customer, and that’s one of the things we were looking for.
Q: What is the best benefit?
A: Access to the MPF group at the Federal Home Loan Bank of Pittsburgh. We can call them anytime with underwriting questions or concerns. We also take advantage of the webinars and training as much as we can. The education has improved the overall quality of the underwriting in our loan department. We service hundreds of MPF loans and presently have no delinquencies. The bottom line is we want to continue to deliver good quality. |
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