Effective Today: Reduced Credit Enhancement Obligation Lowers Your Collateral Requirements
Potentially Improves Your Risk Based Capital Position 

Starting today, the Federal Home Loan Bank of Chicago is reducing the credit enhancement (CE) obligation for new loans that you fund through the Mortgage Partnership Finance® (MPF®) Program Traditional products. MPF Traditional products include MPF Original, MPF 125, and MPF 35.

In addition, if your institution has funded MPF Traditional loans in the past, you may be eligible to reduce your CE obligation for your existing master commitments (MCs). If you are eligible for the reduction in the CE obligation, you will receive a separate email communication on Monday, February 6, with details of your options.

For additional information, or if you have any questions, please contact your Sales Director at membership@fhlbc.com. 
"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. Certain information included in this email speaks only as of the particular date or dates included herein, and the information in the email may have become out of date. We do not undertake an obligation, and disclaim any duty, to update any of the information in this email. The data and valuations provided herein are for information purposes only and are provided as an accommodation and without charge. The Federal Home Loan Bank of Chicago (FHLBC) makes no representations or warranties about the accuracy or suitability of any information in this email. This email is not intended to constitute legal, investment, accounting or financial advice or the rendering of legal, consulting, accounting or other professional services of any kind. Any forward-looking statements involve risks and uncertainties including instability in the credit and debt markets, economic conditions (including effects on mortgage-backed securities), changes in mortgage interest rates and prepayment speeds on mortgage assets, our ability to successfully transition to a new business model (should we decide to do so) or to pay future dividends. We assume no obligation to update any forward-looking statements made herein. The risks, uncertainties and factors that could affect the FHLBC and its financial results are discussed more fully in the FHLBC’s reports filed with the Securities and Exchange Commission, which are available on the FHLBC’s website at www.fhlbc.com.
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