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
The 2014 @CUwomen Forum was held in Gold Coast, Australia yesterday during @WOCCU 's World CU Conference.
1 hours ago
.@CFPB obtains $92M in debt relief from Colfax Capital Corp. http://t.co/QPZAeCAcy2 See also: http://t.co/Kjf4HHkINW
3 hours ago
Julian Castro was sworn in as 16th secretary of @HUDgov Dept. of Housing and Urban Development Mon.
3 hours ago
.@CUNA's Chief Economist @SchenkMike talks consumer confidence--at highest levels since 2007 w/ @TheStreet @JoeDeaux http://t.co/JyoYQmhAxc
3 hours ago
RT @CUNA: .@CUNA's Jeremy Dalpiaz congratulates @reppittenger on reg relief bill consideration after @FinancialCmte markup http://t.co/9JMG…
3 hours ago