Contacts:
Fannie Mae Marilyn Kornfeld 202 -752-5177 4497 October 7, 2008
Federal Home Loan Bank of Chicago Nancy L. Schachman 312-552-1740
Number: Date:
Fannie Mae and the Federal Home Loan Bank of Chicago to Provide Additional Liquidity and Stability to the Mortgage Market Fannie Mae (FNM/NYSE) and the Federal Home Loan Bank of Chicago today announced a new partnership whereby Fannie Mae will purchase 30- and 15-year fixed rate mortgage loans from the Federal Home Loan Bank of Chicago. Fannie Mae will purchase loans channeled through FHLB Chicago’s Mortgage Partnership Finance® (MPF®) Program, which for 11 years has provided funding to hundreds of member community banks, thrifts and other financial institutions to ensure the availability of affordable mortgages to working families across the country. By providing this additional source of funding for MPF mortgages, Fannie Mae helps both organizations meet national calls to expand their service to the market and provide more liquidity. While the arrangement is currently available to FHLB Chicago member institutions through the MPF Xtra™ product, other Federal Home Loan Banks that participate in the MPF Program may seek to offer the MPF Xtra option to their members in the future. "The high-quality conventional mortgage loans originated by our members throughout the history of the MPF Program continue to perform well, even in this tumultuous market," said Matt Feldman, President and CEO, Federal Home Loan Bank of Chicago. "Our partnership with Fannie Mae facilitates access to the secondary market through the familiar infrastructure of the MPF Program. Most importantly, this program will make it easier for the majority of our members to continue to offer competitively priced fixedrate mortgages to their customers in their communities." Approved by the Federal Housing Finance Agency (FHFA), regulator of both the Home Loan Banks and Fannie Mae, the agreement allows Fannie Mae to work with an experienced counterparty with established business processes for loan commitment and funding and to provide an efficient secondary platform for small lenders. “Partnering with the Federal Home Loan Bank of Chicago helps us to fullfill our mission to provide the most support possible to the market, while prudently managing risk,” said Herb Allison, President and CEO, Fannie Mae. (more)
Fannie Mae and the FHLB of Chicago to Provide Page Two The agreement is in line with FHFA Director James Lockhart’s September 19th statement on the continued role of the Federal Home Loan Bank system in mortgage finance and the important role of the GSEs to provide greater stability to the market. For more information, FHLB Chicago members should visit www.fhlbc.com. ###
The Federal Home Loan Bank of Chicago is a wholesale bank and government sponsored enterprise with approximately $93 billion in assets that provides housing finance to 823 member commercial banks, savings institutions, credit unions, and insurance companies located in the 7th Federal Home Loan Bank District of Illinois and Wisconsin. Mortgage Partnership Finance® and MPF® are registered trademarks of the Federal Home Loan Bank of Chicago and MPF Xtra™ is a trademark of the Federal Home Loan Bank of Chicago. Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. In 2008, we mark our 70th year of service to America's housing market. Our job is to help those who house America.