Bulletin No.: 2008-05
June 3, 2008

TO: STOCKHOLDERS

SUBJECT: MPF® Program

In December 2002, the Federal Home Loan Bank of Dallas (Dallas Bank) entered into an agreement with the Federal Home Loan Bank of Chicago (Chicago Bank) to allow our members to sell mortgage loans under the Mortgage Partnership Finance^® (MPF^®) Program directly to the Chicago Bank. On April 23, 2008, the Chicago Bank announced it will no longer enter into new master commitments or renew existing master commitments to purchase mortgage loans from its own members.  Due to our unique arrangement with the Chicago Bank, this action also applies to the Dallas Bank members that utilize the MPF Program.

In its announcement located on fhlbc.com, the Chicago Bank indicated that it would continue to acquire mortgage loans through July 31, 2008. Consequently, new or existing delivery commitments under existing master commitments must fund no later than that date.  The Chicago Bank also affirmed it will continue to provide programmatic and operational support for mortgage loans already purchased from Federal Home Loan Bank members participating in the MPF Program.

As a result of the Chicago Bank’s announcement, the Dallas Bank will continue to process delivery commitments and mortgage loan fundings through July 31, 2008, and will work closely with the Chicago Bank to find alternative investor solutions for our members’ mortgage assets. If you have questions regarding the MPF Program, please contact your Member Sales Officer at 800.442.9841.

Sincerely,

Terry Smith
President and Chief Executive Officer

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