|Federal Home Loan Bank of San Francisco Purchases Its First Loans Through MPF Program
SAN FRANCISCO, CA (June 10, 2002) -- The Federal Home Loan Bank of San Francisco has entered into a $50 million commitment to purchase home mortgage loans through the Mortgage Partnership Finance(R) Program from Gateway Bank, FSB. To date, the Federal Home Loan Bank of San Francisco has purchased loans from Gateway Bank with a median loan size of $225,000. This marks the first time that the Federal Home Loan Bank of San Francisco has invested in individual mortgage loans.
"We are pleased to have partnered with Gateway Bank to purchase our first mortgage loans through the MPF Program," said Jennifer Burlison, Vice President, Mortgage Purchases, at the Federal Home Loan Bank of San Francisco. "The MPF Program adds much-needed competition to the secondary mortgage market. This is a win-win situation for community bankers and homebuyers."
Created by the Federal Home Loan Bank of Chicago five years ago, the MPF Program provides members of the Federal Home Loan Bank of San Francisco an alternative to holding fixed rate, conventional conforming and government residential mortgage loans in portfolio or selling loans servicing released as a means of offering competitive loan origination rates. Under the MPF Program, the local lender manages the credit risk and customer relationship, while the Bank manages the funding, interest rate, and prepayment risks.
"The MPF Program is an attractive alternative to selling fixed rate mortgages in the secondary market because we can maintain what we value most -- our customer relationships," said Poppi Metaxas, President and Chief Executive Officer of Gateway Bank, which is based in San Leandro, Calif. "This program allows us to free up funding for additional lending opportunities."
Offered by 9 of the 12 Federal Home Loan Banks, the MPF Program has more than $27 billion in loans outstanding as of March 31, 2002. For more information about the MPF Program, visit the Bank's website at www.fhlbsf.com.
Federal Home Loan Bank of San Francisco
About the Federal Home Loan Bank of San Francisco:
The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgages to people of all income levels and provide credit that supports neighborhoods and communities. As of March 31, 2002, the Bank had $94 billion in outstanding loans to its members. The Bank also funds community investment programs that help members create affordable housing, promote community economic development, and foster partnerships among lenders, housing developers, community organizations, and government agencies. With $130 billion in assets, the San Francisco Bank is the largest of the 12 banks in the Federal Home Loan Bank System. It serves and is owned by 334 commercial banks, savings institutions, credit unions, and thrift and loan companies headquartered in Arizona, California, and Nevada.