The Federal Home Loan Bank of Chicago is making it easier for members to participate in its Mortgage Partnership Finance program for government-backed loans.
The bank has partnered with Nationstar Mortgage Holdings to provide a servicing-release option for banks and thrifts that don't want to service Federal Housing Administration loans or can't meet the servicing standards required by Ginnie Mae.
The MPF Government mortgage backed securities program provides a secondary market outlet for FHLB members that originate FHA, Department of Veterans Affairs and Rural Housing Service guaranteed loans.
"The MPF Government MBS program servicing-release option will allow participating members to be more competitive in their communities they serve by providing them a proven outlet for servicing at attractive pricing, which they can pass on to their borrowers," the Chicago Home Loan Bank said Wednesday in a press release.
The Government MBS program is a relatively new program. The Chicago FHLB issued its first Ginnie Mae MBS in July.
"Nationstar and the MPF Program are natural partners due to our unwavering commitment to provide customers with home loan solutions at competitive pricing," said Nationstar President Jay Bray. "We look forward to providing the Federal Home Loan Banks' valued members access to our outstanding mortgage servicing experience."
Based in Dallas, Nationstar has a $408 billion servicing portfolio and it originated $4.9 billion in single-family loans in the third quarter.