Chicago FHLB launches Ginnie Mae MBS program
Gives small banks access to secondary mortgage market
The Federal Home Loan Bank of Chicago will soon launch its new program that allows members to originate and sell government-backed loans into Ginnie Mae mortgage-backed securities, according to a post from the National Association of Federal Credit Unions.
The Federal Housing Finance Agency approved Chicago FHLB’s member institutions in Illinois and Wisconsin to use the pilot program, called Mortgage Partnership Finance Government MBS program.
Ginnie Mae President Ted Tozer said during the NAFCU 2013 Congressional Causcus that the program is aimed at smaller institutions that lack direct access to the secondary market.
In Ginnie Mae’s announcement about the program last September, the entity said lenders participating in its new product will be able to choose whether to retain or release servicing on the government-guaranteed loans they originate.