[Federal Register: August 12, 1999 (Volume 64, Number 155)]
[Notices]               
[Page 44016]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12au99-65]                         

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FEDERAL HOUSING FINANCE BOARD

[99-N-10]

 
Pilot Mortgage Program Proposed by the Federal Home Loan Banks of 
Cincinnati, Indianapolis, and Seattle

AGENCY: Federal Housing Finance Board.

ACTION: Notice.

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Background

    Pursuant to the procedures set forth in Federal Housing Finance 
Board (Finance Board) Resolution 97-70 (November 12, 1997), the Finance 
Board is publishing notice of receipt of an application from the 
Federal Home Loan Banks (FHLBanks) of Cincinnati, Indianapolis, and 
Seattle to initiate a pilot program. As specified in the procedures, 
the Finance Board will not act on the application during the 30-day 
notice period and will consider any comments received during the notice 
period before taking action.

SUMMARY: The Finance Board has under consideration a proposal submitted 
jointly by the FHLBanks of Cincinnati, Indianapolis and Seattle to 
initiate a pilot program to purchase mortgage loans from member 
financial institutions under a credit risk sharing arrangement. Under 
the proposed Mortgage Purchase Program, or MPP, the FHLBanks could 
purchase fixed-rate, single family mortgages from member financial 
institutions subject to the establishment of a risk-sharing account 
designed to transfer a substantial portion of the credit risk to the 
member financial institution. In addition to the risk-sharing account, 
the member would further credit enhance the mortgage loans by providing 
supplemental mortgage insurance. The MPP is designed to provide member 
financial institutions with another alternative to selling mortgages in 
the secondary market, and the FHLBanks with a means to increase 
mission-related activities.

FOR FURTHER INFORMATION CONTACT: Scott Smith, Deputy Director, Office 
of Policy, Research and Analysis, (202) 408-2991, Federal Housing 
Finance Board, 1777 F Street, NW, Washington, DC 20006.

    Dated: August 6, 1999.
Bruce A. Morrison,
Chairman.
[FR Doc. 99-20797 Filed 8-11-99; 8:45 am]
BILLING CODE 6725-01-P