Press Release

San Francisco—Tempe Schools Credit Union has been approved to sell loans to the Federal Home Loan Bank of San Francisco (FHLBank San Francisco) under the Mortgage Partnership Finance® (MPF®) Program, the FHLBank San Francisco announced today.

"As a participating financial institution, we will be able to take advantage of the extremely competitive pricing offered through the MPF Program, while retaining the servicing of the loans we sell into the program," said Margaret Hunnicutt, Chief Financial Officer of Tempe Schools Credit Union. "Maintaining strong customer relationships is very important to us, so this program is a good fit."

Tempe Schools Credit Union joins three other credit union members of FHLBank San Francisco that are approved as Participating Financial Institutions (PFIs) under the MPF Program. Tempe Schools Credit Union is the first Arizona-based member to sign up for the program.

PFIs that sell loans to FHLBank San Francisco through the MPF Program share in the credit risk of the loans and are compensated for taking on that risk through a credit enhancement fee. FHLBank San Francisco takes on the interest rate and prepayment risks of the loans it purchases. Eligible loans include 15-, 20-, and 30-year conventional conforming fixed rate mortgages and 15- and 30-year FHA/VA fixed rate mortgages on single-family residential properties.

"The MPF Program gives our member credit unions a competitive edge in the secondary market by capitalizing on their expertise in managing the credit risk of the loans they originate.," said Jennifer Burlison Vice President of Mortgage Purchase Programs at the FHLBank San Francisco. "Our members know their customers and are expert at managing those relationships, including the credit underwriting and loan servicing of their mortgage loans. The FHLBank San Francisco's expertise lies in managing the interest rate and prepayment risk of fixed rate assets. By tapping our respective strengths, the MPF Program creates real value for our members."

The Federal Home Loan Bank of San Francisco

The FHLBank 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 FHLBank San Francisco also funds community investment programs that help members create affordable housing and promote community economic development. The FHLBank San Francisco serves and is owned by 342 commercial bank, savings institution, credit union, thrift and loan, and insurance company members headquartered in Arizona, California, and Nevada.

"Mortgage Partnership Finance" and "MPF" are registered trademarks of the Federal Home Loan Bank of Chicago.

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

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