American Banker (10/08/08) P. 13; Berry, Kate
The Federal Home Loan Bank of Chicago launched its Mortgage Partnership Finance program more than 10 years ago to compete directly with Fannie Mae and Freddie Mac; but since the bank was forced to cease the purchase of 15- and 30-year mortgages from its members in July, it has had to assume the risk of holding such loans on its balance sheet. However, the FHLB's risks will be lowered due to a new partnership with Fannie Mae, which will purchase its mortgages. Federal Housing Finance Agency director James Lockhart says the arrangement will benefit Fannie Mae, as it "may find it more efficient to manage one relationship--with the FHLBank of Chicago--than to work with a number of smaller, individual institutions."
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment