CHICAGO – The Mortgage Partnership Finance (MPF) Program and Redwood Trust, Inc. have announced today higher loan limits for the MPF Direct product. The new single-family loan limit is $1.5 million, up from $729,750, and will take effect early in the third quarter of 2015.
“We are focused on helping FHLBank members that want to sell into the secondary mortgage market remain competitive,” said John Stocchetti, Executive Vice President & Group Head, Mortgage Partnership Finance Program at the Federal Home Loan Bank of Chicago, which operates the MPF Program for the FHLBank System. “The increase in the MPF Direct product’s loan limit is intended to help members that operate in urban or other areas where home prices are higher than the national average.”
The MPF Direct product allows members of a Federal Home Loan Bank that participate in the MPF Program to deliver eligible jumbo mortgage loans through the MPF Program’s operational platform to a subsidiary of Redwood Trust. This arrangement adds private capital to the secondary mortgage market, the FHLB-Chicago said.
The MPF Program also announced the following Federal Home Loan Banks have been approved by their regulator to offer the MPF Direct product: Atlanta, Boston, Chicago, and San Francisco.