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FHLB Offers Servicing Transfers.(Federal Home Loan Bank)(Brief Article)

Mortgage Servicing News

| October 01, 2003 | COPYRIGHT 2003 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

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 ...

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