Federal Home Loan Banks

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

August 5, 2016 - Inside The GSEs

FHLB Advances Up in Second Quarter, Earnings Down

The Federal Home Loan Bank System witnessed a quarterly drop in earnings, but posted an 11.6 percent jump in advances in the second quarter as lenders ramped up mortgage originations. The combined net income was $792 million in the second quarter of 2016. That number is down from the $825 million in the previous quarter. The report noted that the 12-month increase was mostly due to higher net interest income, gains on trading securities, and higher gains on litigation settlements, partially offset by losses on derivatives and hedging activities. There was a considerable amount of quarterly fluctuation in net income among the FHLBanks. For example, the FHLBank of...

July 29, 2016 - Inside FHA/VA Lending

VA Further Clarifies Guidance on TRID, Other Policy Handbook Items

We pick up where we left off last issue with the Department of Veterans Affairs attempting to clarify certain guidance in the VA Lender Handbook. ? If the TRID (Truth in Lending/Real Estate Settlement Procedures Act Integrated Disclosures) closing disclosures change after the veteran signs [the form], should the lender require the veteran to sign it again? VA: The short answer is yes. The lender is required to provide the TRID closing disclosure no later than three business days before consummation. The lender is required to provide a corrected closing disclosure to the borrower three days before consummation or closing in certain instances, and at or before consummation if other types of changes occur, such as adjustment of costs or credits. Therefore, any changes made that require an amended disclosure must have the borrower’s signature. ? Is the Amendatory Clause mandatory for all ...

July 29, 2016 - Inside MBS & ABS

More of the Same on Interest Rates from the FOMC, Expect Perhaps One Small Raise at Year End, at Best

Look for the Federal Reserve to repeat last year’s performance and raise interest rates one quarter of one percent in December, according to some supporters and critics of the U.S. central bank, enabling the Fed to say it did, in fact, lift interest rates this year. During its meeting in Washington, DC, this week, the Fed once again, as expected, opted to hold rates unchanged and did not tip its hand about a future move, although some market participants came away with the impression an increase in September is a little more likely than had been the case after the central bank’s last meeting. The Federal Reserve’s Open Market Committee last raised...

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...


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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