The Federal Home Loan Bank of Chicago will issue mortgage-backed securities guaranteed by Ginnie Mae and backed by mortgages originated by member financial institutions, the two entities announced jointly this week. The new conduit product, called the MPF Government MBS, is an offshoot of the Chicago Bank’s Mortgage Partnership Finance program. The new product is intended to provide smaller mortgage lenders that lack direct access to the secondary mortgage market another option for their home-buying customers. Lenders will be able to choose whether to retain or release servicing on the government loans they originate with a reliable channel for selling their loans, according to FHLBank of Chicago President Matt Feldman.