The newest program in the mortgage markets today is an innovative method of financing home loans developed by the Chicago Federal Home Loan Bank.  The Mortgage Partnership Finance® Program gives Home Loan Bank member financial institutions a competitive new alternative when funding mortgages for their homebuying customers.  By adding much-needed competition and balance to the secondary mortgage market, the MPF® Program benefits FHLB member financial institutions and American homebuyers.

The MPF Program's premise rests on the simple idea that by combining the credit expertise of a local lender with the funding and hedging advantages of a Home Loan Bank, a more competitive, economical and efficient method of funding mortgages will result.  The MPF Program gives lenders the best of both previous models of mortgage lending; they can retain the credit risk and customer relationship of their loans while shifting the interest rate and prepayment risks to the FHLB.  This innovative approach to risk management represents the next step in the evolution of mortgage financing.

Advantages of the MPF Program Adds much-needed competition and balance to the secondary mortgage market. Is a more profitable and efficient alternative for lenders than selling mortgages to a secondary market agency. Combines the respective strength of the Home Loan Banks and our financial institution members. Each partner is responsible for what it does best. Allows lenders to retain their customer relationships. Disperses credit risk among hundreds of community-based lenders throughout the country rather than concentrating the risks in two secondary market enterprises. Adds value to FHLB members by fulfilling the housing finance mission of the Home Loan Banks. Is 100% consistent with the mission of Federal Home Loan Banks to promote economical housing finance.  You may obtain more information regarding the MPF Program by visiting fhlbmpf.com.  The content or information at this external Web Site is the sole responsibility of their authors and/or owners.

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The Mortgage Partnership Finance® Program and MPF® are registered trademarks of the Chicago Federal Home Loan Bank.