FHLBank Chicago Enhances MPF® Pricing Options to Support Member Mortgage Lending

New pricing options help members strengthen mortgage execution while supporting housing finance in the communities they serve

CHICAGO--(BUSINESS WIRE)--Federal Home Loan Bank of Chicago (FHLBank Chicago) has expanded low loan balance pricing options available through its Mortgage Partnership Finance^® (MPF^®) Traditional and MPF Xtra^® products, providing members with greater flexibility to optimize mortgage delivery strategies and support lending in their local communities. The expanded financing solutions are designed to help participating financial institutions better compete for smaller-balance mortgage originations while continuing to serve borrowers in their local communities.

The enhanced pricing options give members greater flexibility in supporting their lending strategies. The changes introduce new low loan balance options for qualifying conventional mortgage loans across several product categories, including fixed-rate 15-year, 20-year and 30-year mortgages. Existing MPF secondary market solutions remain available, including incentivized pricing for loans supporting low- to very low-income borrowers.

The new pricing schedules are available for loans with balances up to $450,000 and are intended to provide members with more choices when selling loans through the MPF Program. The enhancements build upon the Program's longstanding commitment to offering members innovative secondary market solutions that support both business objectives and community lending goals. The enhancements were developed in response to evolving market conditions and ongoing member interest in additional options for lower-balance mortgage lending.

"These enhancements provide members with additional flexibility as they navigate changing market conditions and continue serving borrowers in their communities," said Patrick Sullivan, EVP, MPF Program.

By expanding low loan balance pricing options, FHLBank Chicago continues to help institutions strengthen their mortgage offerings and serve a broader range of borrowers.

Members interested in learning more about the new pricing schedules should contact their FHLBank Chicago Sales Director.

ABOUT THE MORTGAGE PARTNERSHIP FINANCE^® PROGRAM
The Mortgage Partnership Finance^® Program allows eligible Federal Home Loan Bank members to sell conventional conforming and government loans to their FHLBank or other investors. The program provides secondary market access, liquidity, and mission-aligned mortgage products designed for member lending objectives. The MPF Program is administered by six participating Federal Home Loan Banks and serves member financial institutions across the country. "Mortgage Partnership Finance" and "MPF" are registered trademarks of the Federal Home Loan Bank of Chicago.

ABOUT THE FEDERAL HOME LOAN BANK OF CHICAGO
FHLBank Chicago is a regional bank in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions, with a focus on providing solutions that support the housing and community development needs of members’ customers. FHLBank Chicago is a self-capitalizing cooperative, owned by Illinois and Wisconsin members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. To learn more about FHLBank Chicago, please visit fhlbc.com.