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| A Snapshot for Participating Financial Institutions | Spring 2014 |
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PFI Conversation: The MPF Program Goes “Out of Their Way to Work
with Us” |
Community Bank serves two very different markets in western  Montana: Missoula, a university town with a population of approximately 67,000, and Ronan, a rural, agriculture-centered community located on the Flathead Indian Reservation. Established in 1910, this family-owned bank now has approximately $180 million in assets and eight locations in these and nearby towns.
MPF in Focus recently spoke with Gordon Zimmerman, President of Community Bank and Vice Chairman of the Federal Home Loan Bank of Seattle (Seattle Bank), about Community Bank's partnership with the Mortgage Partnership Finance® (MPF®) Program.
What were the circumstances that led you to begin using the MPF Program?
Gordon: We were one of the first members of the Seattle Bank to use the MPF Xtra® product, which I think will be of great interest to Montana’s community banks because they’re experiencing exactly what we experienced: The Great Recession took down a number of the secondary market participants and brought a lot of restrictions. The secondary market participants that survived were not interested in one-off deals; you had to commit to a certain volume, and a small community bank, especially in a rural area, is just not able to do that. Our options for secondary market sales were very limited or had evaporated entirely. The MPF Program gives us an alternative that enables our loan officers to better serve our customers.
What are some of the benefits you’ve realized?
Gordon: My residential real-estate loan officers say that better pricing for our customers and the lack of restrictive overlays allow them to be more competitive in the market. And when it comes to underwriting, we get much quicker responses from the Seattle Bank than we do from other secondary market participants. The communication is more timely and clear. They go out of their way to work with us.
How would you rate your experience with the MPF Program?
Gordon: It’s been great. The MPF team is knowledgeable and has been helpful from the very beginning — getting us set up with the process, going through the contractual questions, and providing support going forward as well.
How would you describe the relationship you have with the Federal Home Loan Bank of Seattle?
Gordon: It’s a partnership. We work very well together. The Federal Home Loan Bank System as a whole has been there for community banks when we’ve needed them. They’ve been there consistently, and they’ve been there when no one else was, especially in the depths of the Great Recession. Since that time, they’ve been working to meet members’ needs as the economy has changed, and as the banking industry itself has changed. The MPF Xtra product is a great example of that support. |
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| Copyright 2014, Mortgage Partnership Finance Program. “Mortgage Partnership Finance,” “MPF,” “MPF Xtra,” and “eMPF” are registered trademarks of the Federal Home Loan Bank of Chicago. The “MPF Mortgage Partnership Finance” logo is a trademark of the Federal Home Loan Bank of Chicago. |
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