“Nationstar and the MPF Program are natural partners,” said the lender’s president and CEO, Jay Bray. “We look forward to providing the Federal Home Loan Banks’ valued members access to our outstanding mortgage servicing experience.”
Through the MPF Government MBS product, the program purchases fixed-rate mortgage loans originated by Federal Home Loan Bank members that are insured or guaranteed by the FHA
, and USDA through its RHS Section 502 loan program. The MPF Program issues securities guaranteed by the Government National Mortgage Association (Ginnie Mae) backed by these government mortgages.
The MPF Government MBS servicing-released option allows participating members to be more competitive in the communities they serve by providing them a proven outlet for servicing at attractive pricing, which they can pass on to their borrowers.
“We are pleased to announce our partnership with Nationstar, a leading acquirer of Ginnie Mae servicing,” said John Stocchetti, executive vice president and group head of the MPF Program at the Federal Home Loan Bank of Chicago, which operates the MPF Program for the FHLBank System. “
Nationstar is the fourth largest residential mortgage servicer with industry-leading experience acquiring, boarding, and servicing residential mortgage products.
The MPF Program allows participating members of the Federal Home Loan Bank System to sell fixed-rate loans into the secondary mortgage market. To participate in the MPF Program, a financial institution must be a member of a Federal Home Loan Bank that offers the MPF Program.
Currently, the Federal Home Loan Banks of Atlanta, Boston, Chicago, Dallas, Des Moines, New York, Pittsburgh, Topeka, and San Francisco purchase loans from participating members through the MPF Program.
Lenders are embracing the Mortgage Partnership Finance Program, finding it an excellent vehicle to tap into the secondary mortgage market.