Federal Home Loan Banks (FHLBs) have been purchasing single-family mortgages from their member banks and thrifts since 1997 — when the Chicago FHLB first launched its flagship Mortgage Partnership Finance (MPF) program.

Most of the 12 FHLBs participated in the early MPF initiative and a similar offshoot known as the Mortgage Purchase Program. MPF grew rapidly in the early 2000s and its founder, then-Chicago FHLB president Alex Pollock, even sought regulatory approval to securitize MPF loans, but never got the green light.

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