San Francisco FHLB to buy mortgages
Oct. 4, 2013 – The Federal Home Loan Bank of San Francisco announced it will begin buying mortgages again next year through the Mortgage Partnership Finance Program, opening up one more avenue for credit unions seeking mortgage liquidity.
FHLBank President and CEO Dean Schultz said, “Renewing our participation in the MPF Program will allow us to offer members a price-competitive alternative secondary market channel for their mortgage originations. It will also allow us to increase our core mission assets and offer a new tool, through the MPF Government product, to help low-income and moderate-income homeowners and first-time homebuyers.”
The bank said it would purchase conventional, conforming, fixed-rate mortgage loans as well as mortgage loans backed by the Federal Housing Administration and Veterans Administration.
NAFCU Senior Regulatory Affairs Counsel Tessema Tefferi said, “The FHLB announcement is good news for credit unions that need access to the secondary mortgage market. Several other FHLBs are buying mortgages as well. As the housing finance reform debate continues, NAFCU will keep advocating credit union access to the secondary market and fair pricing based on loan quality instead of loan size.”