New Mortgage Purchase Option
April 1, 2015
Topeka, Kansas - FHLBank Topeka is now offering its member financial institutions the opportunity to participate as an investor in residential whole loan mortgages originated under the Mortgage Partnership Finance® (MPF®) Program. These participations allow members to enjoy the benefits of investing in the enormously successful shared credit risk program.
For more than 15 years, the MPF Program has offered risk-sharing mortgage products where FHLBank member originators retain credit risk by providing a credit enhancement on the loans sold under the program. As a result, FHLBank Topeka’s MPF portfolio, which is held on its balance sheet, has performed very well with delinquencies that have been more than seven times lower than the national average over the last several years. In addition, credit losses within the portfolio have historically been extremely low.
“Member mortgage participations under the MPF Program benefit both sellers and buyers of mortgage loans with transactions that are entirely supported by private capital. Sellers benefit from receiving a better execution on their high quality loan originations, and buyers benefit from owning credit enhanced loans that have a similar credit profile to agency mortgage-backed securities while potentially offering higher returns,” says Andrew Jetter, President and CEO of FHLBank Topeka.
There is no government involvement, guarantee fees, or securitization fees keeping more of the value related to the mortgages within the FHLBank system.
Please contact Julie DeVader, VP, Director of Marketing and Communications, at 785-438-6044 for additional information and/or to arrange an interview with Dan Hess, Chief Business Officer, SVP.