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Seattle bank seeks broader loan options for home buyers

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The Federal Home Loan Bank of Seattle has filed an application with the Federal Housing Finance Board to purchase mortgage securities from cooperative bank members and resell them to bank system members, other federal home loan banks and investors outside the system. This proposed MortgageChoice program, an extension of the bank's existing Mortgage Purchase Program, would give the bank a greater role in offering a secondary market alternative for mortgages, which would extend more options to home buyers seeking home loans through the bank's member financial institutions, according to an announcement today by the Federal Home Loan Bank of Seattle. The new offering could also enable the Seattle Bank to better manage its financial risk, bank officials announced. Under its Mortgage Purchase Program, the Seattle Bank can purchase mortgage loans – not securities – and hold them in portfolio. With approval from the finance board, the bank could purchase mortgage securities fro...