National Mortgage News (10/13/08) Vol. 33, No. 4, P. 15; Collins, Brian
Fannie Mae will purchase mortgages originated under the Federal Home Loan Bank of Chicago's Mortgage Partnership Finance program by its member banks. These MPF Xtra loans will not involve the program's trademark credit-risk sharing element once sold to the government-sponsored enterprise, however. Chicago FHLBank President Matt Feldman says the initiative "will make it easier for the majority of our members to continue to offer competitively priced fixed-rate mortgages to their customers in their communities." Fannie Mae will assume the member banks' interest rate risk, prepayment risk and credit risk, while the banks hang onto servicing rights and servicing fee revenues.
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