More mortgage partners don't necessarily mean more loan fundings for the Federal Home Loan Banks.
The volume of loans funded through the Mortgage Partnership Finance program fell to $1.9 billion in the second quarter, the Chicago FHLB recently announced. The latest national numbers are down from the previous quarter's $2.8 billion and from $7.6 billion in the same period a year earlier.
The downturn is "consistent with the slowdown of fixed-rate mortgage origination activity throughout the industry," the bank said.
The number of the program's participating financial institutions reportedly rose to 919 as of the end of the second quarter, up 135 members from a year ago.
Under the MPF program, the risks of long-term, fixed-rate mortgage lending are shared between the lender and the FHLB. Credit risk of the loans is principally handled by the lender, while the FHLB handles the interest rate and funding risks, according to the announcement.
MPF conventional loan delinquency of 90 days or more was 0.20% in the year's second three-month period, the bank said, above the 14% in the same quarter a year ago.