Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Market
FHLB Of Chicago Will Issue Ginnie Mae Securities
CHICAGO and WASHINGTON (9/11/13)--The Federal Home Loan Bank of Chicago and the Government National Mortgage Association (Ginnie Mae) Tuesday announced the bank will 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 can choose whether to retain or release servicing on the government loans they originate and will have a channel for selling their loans that removes hurdles low-volume originators face in today's competitive market, said the bank and Ginnie Mae.
 
MPF Government MBS will initially be 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.
 
The bank provides the administrative and operational support for the program, which allows participating members of the Federal Home Loan Bank System to sell fixed-rate, conventional conforming loans into the secondary mortgage market.
 
With the new authority granted by its regulator, the Federal Housing Finance Agency, the bank will purchase government-insured loans, hold these loans on-balance sheet, and pool them into guaranteed Ginnie Mae securities that may then be sold to investors. Ginnie Mae guarantees more than $1.4 trillion of MBS and most of government loans are placed in Ginnie Mae MBS.


RSS print
News Now LiveWire
NCUA re-schedules start of tomorrow's closed meeting to 9 a.m. ET. Open meeting still at 10 a.m. ET.
8 hours ago
.@lisamurkowski @SenatorEnzi @SenJohnBarrasso are latest to weigh in on NCUA risk-based capital proposal. See #NewsNow tomorrow for more
9 hours ago
Now up on News Now: Fed stays course on taper, interest rates http://t.co/6DntsW58vA
11 hours ago
Positive performance indicators and the potential for rising interest rates in @TheNCUA 's latest economic update. http://t.co/yptPbIGvnU
14 hours ago
The @CFPB has launched a nationwide effort to provide financial education. http://t.co/sF3FXHpv3k
14 hours ago