MPF Government MBS Product


MPF Government MBS is an MPF® Program government loan product whereby the Federal Home Loan Bank of Chicago purchases government loans from eligible Participating Financial Institutions (PFIs). The purchased loans will be aggregated and pooled into securities guaranteed by the Government National Mortgage Association (Ginnie Mae). Loans that qualify under this product are fixed-rate mortgage loans insured or guaranteed by the following government agencies:

​FHA ​Low down payment options
​VA​Financing and down payment flexibility for military veterans
​RHA Section 502​Flexible financing for borrowers in rural and agriculture areas​

How It Works

The Mortgage Partnership Finance® Program offers PFIs competitive mortgage products and pricing as a benefit to membership in their FHLBank. PFIs are required to obtain a master commitment specifically for the MPF Government MBS product in order to participate in this option. MPF Government MBS offers PFIs the ability to retain servicing or sell the servicing and receive a servicing-released premium. PFIs retaining servicing continue to report and remit payments as they currently do under the MPF Program. The Federal Home Loan Bank of Chicago is responsible for monthly reporting to Ginnie Mae.

By combining our competitive pricing and your servicing expertise, you are able to offer your customers access to the best mortgage products in the marketplace today.


The MPF Government MBS Product Benefits PFIs That:

  • Are looking for a competitively priced government loan investor
  • Are approved by the applicable government agency to originate and service loans
  • Want a variety of mortgage loan o​ptions to meet the needs of their customers
  • Have experience servicing using scheduled/scheduled remittance or sell servicing to an approved MPF servicer


Additional Benefits

  • Cash execution - securities pricing
  • Competitive execution, whether servicing is retained or released
  • Same-day loan delivery and funding
  • Depository institutions have no leverage capital or risk-​based capital requirements for loans sold under the MPF Government MBS product