A new program to provide the benefits of Ginnie Mae securitization to Federal Home Loan Bank members has been slow getting off the ground, but industry insiders say momentum is building.

So far only six Ginnie Mae pools — with an unpaid principal balance of $9.6 million — have been issued through the collaboration spearheaded by the Federal Home Loan Bank of Chicago. Other than the Chicago bank, just the Atlanta and Boston FHLBs have received regulatory approval to participate. But observers expect other FHLBs to apply while several state housing finance agencies have already expressed interest in getting involved.

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