In early September, the Federal Housing Finance Agency issued preliminary approval for the Chicago FHLB to venture into new territory and become a Ginnie Mae issuer for FHA, VA and Rural Housing Service loans.
This new program will open the door for the Chicago bank and the other nine FHLBs that participate in the Mortgage Partnership Program to achieve Ginnie Mae execution for their member banks, thrifts and credit unions.
FHLB of Chicago president and chief executive Matthew Feldman said that he will start the program as soon as we get final clearance from our regulator. He spoke at the Mortgage Bankers Association annual convention Tuesday.
The CEO also said the bank is working on a jumbo conduit program that will purchase high-balance loans of up to $729,750. We are in the late stages of development, he said. He provided few details about the jumbo program and his office could not be reached for comment.
Our objective is to give our members a wide variety of options to help them better access the secondary market and obtain competitive prices, Feldman says.