Starting in 2014, FHLB-SF will purchase conventional, conforming fixed-rate mortgages and Federal Housing Administration/Veterans Affairs-insured mortgages for its own portfolio using the MPF Original and MPF Government products. It will also purchase FRMs from its members and concurrently sell them to Fannie Mae through the MPF Xtra program.
In a press release, FHLB-SF said it will first pilot this program with a small number of members and will add members who are experienced mortgage originators and servicers later in 2014 and 2015.
Dean Schultz, president and CEO, said rejoining MPF will give its members a price-competitive alternative secondary market channel. The MPF Government program will give the bank a new toolto help low-income and moderate-income homeowners and first-time homebuyers.
A spokeswoman for FHLB-SF said the bank had not been active in MPF since 2006 (the loans on its books were acquired before then). Because of changes in the system as well as the new offerings, it is going through a pilot phase first.
As of June 30, FHLB-SF had $1.1 billion in mortgages through MPF.