As the Federal Home Loan Bank system continues to aggressively market its red-hot Mortgage Partnership Finance (MPF) program nationwide - offering an unbeatable competitive advantage for the purchase of Federal Housing Authority loans - the forthcoming entrance of mortgage-lending titans GMAC Mortgage Corp. and Countrywide into the MPF family has rattled some market players who question the longevity and viability of the program for the long-term.

More importantly, market participants predict that the participation of such bigshot players in MPF may exacerbate the already precarious market for Ginnie Mae securities.

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