Federal Home Loan Banks

Browse articles from all of our Newsletters related to Federal Home Loan Banks.

July 22, 2016 - Inside The GSEs

FHLBank Raises Loan Limit by $1M and Expands MPF Program

The Federal Home Loan Bank’s Mortgage Partnership Finance Direct program significantly raised its loan limits from $1.5 million to $2.5 million, and now includes hybrid adjustable-rate mortgages. This is the second jump in about a year. Last June, the loan limit more than doubled from $729,750 to $1.5 million. MPF Direct participants are often small lending institutions. Eric Schambow, senior vice president and senior director with MPF product management, told Inside The GSEs that in working with members that already deliver under the MPF program and its Advisory Council of Private Funding Institutions, the FHLB heard them express the need to more completely match what the marketplace offers.

July 22, 2016 - Inside MBS & ABS

Loan Limit Increases, Underwriting Loosens for MPF Direct Product Delivered to Redwood

The Federal Home Loan Banks’ Mortgage Partnership Finance program and Redwood Trust announced a number of changes this week to the MPF Direct product. Beginning Aug. 31, the loan limit will increase to $2.5 million and hybrid adjustable-rate mortgages will be eligible for delivery. The MPF Direct program was launched in 2014, with a loan limit of $729,750, the high-cost loan limit for the government-sponsored enterprises at the time. In the third quarter of 2015, the loan limit for the product was increased to $1.5 million. The loan limit for cash-out refinances is $750,000. “We continue...

July 8, 2016 - Inside The GSEs

First NPL Sales Report Details Top Buyers and Sales Outcomes

Fannie Mae and Freddie Mac have sold 41,649 nonperforming loans through May 2016, according to the Federal Housing Finance Agency’s inaugural report on nonperforming loan sales and borrower outcomes. The report, released last week, is the first of two reports the FHFA plans to publish each year highlighting NPL sales activities. The loans had an aggregate unpaid principal balance of $8.5 billion and were delinquent 3.4 years on average. Freddie led the NPL sales market for the GSEs having sold 26,436 delinquent loans. Fannie was a distant second at 15,213. The average loan-to-value ratio was 98 percent. LSF9 Mortgage Holdings and Pretium Mortgage Credit Partners were the top...

June 24, 2016 - Inside The GSEs

FHFA Examiners Hightlight GSE, FHLB Concerns in New Report

Examiners raised several issues in the Federal Housing Finance Agency’s annual report to Congress detailing the work of Fannie Mae, Freddie Mac and the Federal Home Loan Banks. One critical issue in the report, released last week, was the GSEs’ inability to build capital. Examiners said income reductions from shrinking portfolios, coupled with decreases in income from reserve releases and legal settlements and market-to-market volatility from their derivatives portfolio all increase the likelihood of negative net worth in future quarters. Moreover, the examiners said credit-risk transfer initiatives also impose costs that will reduce the GSEs’ earnings. Fannie’s problem assets continued to decline in 2015, but the examiners...


The yield on the benchmark 10-year Treasury fell to all-time low of 1.34% recently. How much better will originations be at your shop in the second half compared to 1H, if at all?

Better by 1% to 10%.
Better by 11% to 25%.
Off the charts better. Applications are great now.
Worse than 1H, but not by much.
A lot worse. But not sure on the damage.

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