With the introduction of a callable auction system and a 469% increase in the amount of loans outstanding in the Mortgage Partnership Finance Program, the Federal Home Loan Bank System is building the blocks to become a formidable competitor to Fannie Mae and Freddie Mac.

The FHLBank System finished 1999 with $1.8 billion in loans outstanding in the MPF program. By June 30 this year, that number was $10.2 billion. Whether this is an indication of built-up demand brought on by a new rule removing the cap on MPF loans or a coincidence is unknown.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.