The Government National Mortgage Association (Ginnie Mae) and the Federal Home Loan Bank of Chicago announced today that total issuance under the Mortgage Partnership Finance® Program (MPF®) recently surpassed $3 billion in mortgage-backed securities (MBS).
The MPF Government MBS product resulted from a partnership forged by the Federal Home Loan Bank of Chicago and Ginnie Mae to issue securities guaranteed by Ginnie Mae and backed by mortgages originated by Federal Home Loan Bank member financial institutions.
The MPF Government MBS product provides mortgage lenders, particularly smaller institutions, direct access to the secondary mortgage market and more mortgage loan solution options for their valued customers. Ginnie Mae developed the first mortgage-backed security in 1970, by pooling loans into a security sold in the secondary market.
“The MPF Program is an important partnership for making the Ginnie Mae MBS system accessible to small community banks and lender partners, and this $3 billion milestone demonstrates its value in the marketplace,” said Ginnie Mae President Alanna McCargo. “This program advances our mission and commitment to ensure liquidity for government mortgage products and create more equitable and affordable homeownership opportunities for households across the country.”
Federal Home Loan Banks across the nation offer the MPF Government MBS product to their members.
“As the MPF Program celebrates 25 years of helping community lenders nationwide, achieving this milestone with Ginnie Mae is another testament to our continued strong partnership,” said John Stocchetti, Executive Vice President of the MPF Program. “Our business model provides community lenders access to the secondary market, and our relationship with these lenders gives their communities access to affordable mortgage products.”
The MPF Program’s partnership with Ginnie Mae began in 2014 and continues to provide lenders a channel to the MBS marketplace.