| Federal Home Loan Bank of Chicago to Issue Ginnie Mae Securities |
The Federal Home Loan Bank of Chicago (Bank) and the Government National Mortgage Association (Ginnie Mae) recently announced that the Bank plans to issue securities guaranteed by Ginnie Mae and backed by mortgages originated by member financial institutions. The new conduit product, called “MPF Government Mortgage-Backed Securities (MBS),” will provide mortgage lenders, particularly smaller institutions that currently lack direct access to the secondary mortgage market, a new option when creating mortgage products for their home-buying customers. Lenders will be able to choose whether to retain or release servicing on the government loans they originate, and they will have a reliable channel for selling their loans that removes hurdles low-volume originators face in today’s competitive market.
MPF Government MBS will initially be made available to eligible participating members of the Federal Home Loan Bank of Chicago in Illinois and Wisconsin before being rolled out more broadly next year.
Click here for the complete press release. | |
