Federal Home Loan Bank of Dallas Introduces MPF Xtra®Product
Seventh Federal Home Loan Bank to Join the MPF Program
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 Eric Schambow, Senior Vice President and Director
of the MPF Program at FHLB ChicagoThe Federal Home Loan Bank of Dallas has announced it has joined the Mortgage Partnership Finance® (MPF®) Program and is now offering the MPF Xtra product, a move that will allow qualifying members to sell fixed-rate, conforming mortgage loans into the secondary market. Through MPF Xtra, home loans are aggregated and sold to Fannie Mae, giving small and mid-sized lenders the ability to maintain customer relationships and compete effectively in the mortgage lending market while avoiding interest rate, prepayment, and credit risks normally associated with long-term, single-family loans.
“We’re delighted to offer community lenders in our region the opportunity to leverage the strength of FHLB Dallas to help families buy new homes or lower the price of their current homes,” said Bank President and CEO Terry Smith. “The beauty of MPF Xtra is that it lets smaller lenders provide the same competitively priced loans as larger banks while keeping the personal, local touch their customers appreciate. They can even continue to service the loans if they choose, so it’s the best of both worlds.”
FHLB Dallas joins six other Federal Home Loan Banks that offer the MPF Program: Boston, Chicago, Des Moines, New York, Pittsburgh, and Topeka. “We couldn’t be more pleased that the Dallas Home Loan Bank is offering this benefit to its members,” said Eric Schambow, Senior Vice President and Director of the MPF Program at FHLB Chicago. “In fact, MPF Xtra loan volume more than doubled in 2012. We think this rise in popularity speaks for itself, and with FHLB Dallas on board, we look for it to continue.” |
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