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The Mortgage Partnership Finance (MPF) Program and Ginnie Mae have announced a new feature available to program participants under the MPF Government MBS product.
The MPF Government MBS product now offers a servicing released option from Nationstar Mortgage in addition to the already existing servicing retained execution. This option provides greater flexibility for local community lenders that want to originate and sell their government loans into the secondary market. In addition, the product is available to lenders in more communities from coast to coast; the FHLB Atlanta, FHLB Boston, and FHLB Des Moines have been approved to offer the MPF Government MBS product. Those three Federal Home Loan Banks join the FHLB Chicago, a Ginnie Mae Issuer offering the MPF Government MBS product.
Through the MPF Government MBS product, the MPF Program purchases 30-year and 15-year fixed-rate mortgages (FRMs) originated by participating Federal Home Loan Bank members that are insured or guaranteed by the following government agencies: FHA, VA, and USDA through its RHS Section 502 loan program. The MPF Program issues securities guaranteed by Ginnie Mae backed by these government mortgages.
“The addition of the servicing released option will appeal to community lenders across the country. They can now receive the benefit of securities pricing with whatever size mortgage volumes they generate,” said Matt Feldman, president of the Federal Home Loan Bank of Chicago, which operates the MPF Program on behalf of nine Federal Home Loan Banks. “These exciting developments mean more FHLBank members can become more competitive as they support homeownership in their communities.”
Ginnie Mae President Ted Tozer said Ginnie Mae welcomes the development because it means that more consumers in more areas will benefit.
“This is directly in line with the mission of Ginnie Mae, which is to make sure that as many lenders as possible, regardless of their size, can access the capital markets, which in turn provides the credit access that is the foundation of the American mortgage finance market,” Tozer said.