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Member Services | Member Resources
« Market Intelligence»
Market Intelligence
Partnership Makes Sense in Current
Mortgage Environment
After years of sustained low interest
rates, mortgage lenders are facing a highly competitive
market with decreased demand for loans. At the same
time, because of the current flat yield curve for U.S.
Treasury instruments, fixed interest rates are decreasing
slightly.
While many experts agree that fixed
rates hovering between 6.25% and 6.50% will not precipitate
refinancing demand, lenders still have an opportunity
to extend fixed-rate loans to borrowers who currently
have adjustable-rate loans due to reset at rates in
excess of current fixed rates. Likewise, borrowers with
those “exotic” products – such as
interest only, option ARMs and varieties of less attractive
home equity loans – may be turning back to the
classic fixed-rate product.
As you direct your marketing efforts
to these borrowers, consider the benefits of the FHLBanks’
Mortgage Partnership Finance® Program.
The MPF® Program –
Putting the Customer First
Since April of 1999, we at FHLBank
Pittsburgh have assisted Participating Financial Institutions
with the ability to offer their customers a local solution
to their mortgage needs. The MPF Program features competitive
pricing options, which include no minimum loan amounts,
no pricing “add-ons” or extra fees for refinances,
escrow waivers or other lending nuances.
We also do not compete with you for
your customers – YOU are our customer. As a valued
customer, we assist you with the application process.
We do not charge an application fee and we conduct on
site training at your office for your staff and provide
continual customer service support and assistance.
Fee Income Adds Value to FHLBank
Membership
Another quantifiable benefit of the
MPF Program is the credit enhancement fee income you
receive. This additional fee income grows in conjunction
with the volume of loans you sell and becomes a steady
income stream each month. Since 1999, FHLBank Pittsburgh
has paid more than $80.3 million to members in credit
enhancement fee income.
Moreover, the MPF Program’s
servicing retained feature allows you to maintain healthy
customer relationships without worries that customers
become frustrated by a revolving door of loan servicers.
Their loan servicing remains with you. To date, FHLBank
Pittsburgh has paid participating members more than
$251 million in MPF Program servicing fees.
The Power of Partnership
You know your customers better than
anyone, and the MPF Program empowers you to control
your credit decisions with those customers. Contact
Jeff Acquafondata or Peggy Stemmler at 1-800-288-3400
for more information regarding how they can help you
enhance the value of your FHLBank membership through
participation in the MPF Program.
“Mortgage Partnership Finance”
and “MPF” are registered trademarks of the
Federal Home Loan Bank of Chicago.
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