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The Seattle Federal Home Loan Bank has teamed up with a mortgage servicer so that participants in its Mortgage Purchase Program can sell their loans serving released.
This new MPP feature will allow participating banks and thrifts to sell their 1-4 family loans to the FHLBank and concurrently sell the servicing rights to Principal Residential Mortgage Inc., Des Moines, Iowa.
"This option is in response to a majority of our membership," said MPP director Greg Teare.
The Seattle bank has 375 member institutions and a survey showed that "nearly 85% of our members are presently selling their loans on a release basis," Mr. Teare said.
Only 24 members are participating in the Seattle MPP program. In connection with the announcement of the servicing release option last ...