FNM to Buy Mortgages From Chicago Federal Home Loan Bank
First Published Sunday, 12 July 2009 02:15 pm - © 2009 Need to Know News
The move, designed to provide additional liquidity and stability to the mortgage market, covers 30yr and 15yr fixed-rate mortgage loans.
Fannie Mae will purchase loans channeled through FHLB Chicagos Mortgage Partnership Finance Program, which for 11 years has provided funding to hundreds of member community banks, thrifts and other financial institutions to ensure the availability of affordable mortgages to working families across the country, according to FNM.
This will help FNM and the FHLB meet national calls to expand their service to the market and provide more liquidity, it said.
"The high-quality conventional mortgage loans originated by our members throughout the history of the MPF Program continue to perform well, even in this tumultuous market," said Matt Feldman, President and CEO of the Chicago FHLB. "Our partnership with Fannie Mae facilitates access to the secondary market through the familiar infrastructure of the MPF Program. Most importantly, this program will make it easier for the majority of our members to continue to offer competitively priced fixed-rate mortgages to their customers in their communities."
