Following a seven year hiatus, one of the government-sponsored enterprises will begin utilizing the Mortgage Partnership Finance program again.
An announcement Wednesday indicated that the Federal Home Loan Bank of San Francisco has renewed its participation in the MPF program.
The GSE exited the program in 2006 after utilizing it for five years. The legacy MPF portfolio of conventional, conforming fixed-rate loans stood at $1.1 billion as of June 30.
Through the program, FHLBank San Francisco will purchase conventional, conforming, fixed rate mortgages from its members for its own portfolio under the MPF Original product.
It will also acquire home loans insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs under the MPG Government product.
In addition, FHLBank San Francisco will also facilitate the purchase of fixed-rate loans originated by its members and conduct a concurrent sale to Fannie Mae under the MPF Xtra product.
Members of FHLBank of San Francisco are based in Arizona, California and Nevada.
A pilot program will have loan purchases starting next year from a small group of members. Subsequently, other “high credit quality members that are active, experienced mortgage originators and servicers” are expected to be added.
“Renewing our participation in the MPF Program will allow us to offer members a price-competitive alternative secondary market channel for their mortgage originations,” Federal Home Loan Bank of San Francisco President and Chief Executive Officer Dean Schultz said in the statement. “It will also allow us to increase our core mission assets and offer a new tool, through the MPF Government product, to help low-income and moderate-income homeowners and first-time homebuyers.”
