Press Release

San Francisco—The Federal Home Loan Bank of San Francisco has committed to purchase over $2.3 billion in home mortgages through the Mortgage Partnership Finance® Program. Since May 2002, the Bank has purchased loans from five members.

"We are gratified to provide our member financial institutions with a competitive alternative to selling their fixed rate loans to secondary market agencies," said Jennifer Burlison, Vice President, Mortgage Purchases, at the Federal Home Loan Bank of San Francisco. "Financial institutions and homebuyers stand to benefit from this option."

Recently, Fremont Bank entered into $225 million in master commitments with the Bank. "The Federal Home Loan Bank of San Francisco provides a variety of services that meet the needs of Fremont Bank," said Brad Anderson, Executive Vice President of Fremont Bank. "We are impressed with their innovation, their creative processes, and the fact that we have a dedicated team of professionals we can call on to assist us with our needs."

Created by the Federal Home Loan Bank of Chicago, the MPF Program provides members of the Federal Home Loan Bank of San Francisco an alternative to holding fixed rate, conventional conforming and government residential mortgage loans in portfolio or selling loans servicing released as a means of offering competitive loan origination rates. Under the MPF Program, the local lender manages the credit risk and customer relationship, while the Bank manages the funding, interest rate, and prepayment risks.

Offered by 9 of the 12 Federal Home Loan Banks, the MPF Program has funded more than $60.8 billion of mortgages as of December 31, 2002.

About the Federal Home Loan Bank of San Francisco

The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgages to people of all income levels and provide credit that supports neighborhoods and communities. The Bank also funds community investment programs that help members create affordable housing and promote community economic development. The Bank serves and is owned by 339 commercial banks, savings institutions, credit unions, and thrift and loan companies headquartered in Arizona, California, and Nevada.

Contact:
Tracy Fine, (415) 616-2707
finet@fhlbsf.com

Amy Stewart, (415) 616-2605
stewarta@fhlbsf.com

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