By Paul Pouliot

The Bank's Mortgage Partnership Finance® program (MPF®) has recently announced a new servicing-released product that combines competitive pricing for loans with attractive pricing for their servicing rights.

This new product provides an opportunity for institutions to participate in the secondary market without being burdened with the added cost of servicing and operations.

The servicing rights are transferred to Colonial Savings Bank of Dallas, Texas, while the member's customer database is protected from solicitation by the servicer.

The MPF program has negotiated a simplified process for the transfer of this servicing right and negotiated minimal fees associated with the transfer. At the same time, the program provides an attractive combined price for both the asset and the servicing.

Our servicing-released product:

• Combines the benefits of the MPF program and a servicing-released execution;

• Provides excellent "all-in" execution compared with alternative servicing-released options (all-in execution = asset price + servicing-release product + credit-enhancement fees;

• Includes a delivery process that is similar to other concurrent-sale processes in the industry;

• Includes servicing by Colonial Savings Bank, an institution with an excellent servicing reputation

• Makes it possible for participating financial institutions to sell their loans to the MPF Program on a servicing-released basis

For more information about the Bank's MPF program, please call 888-675-0556 or Paul Pouliot at 617-292-9641.

Paul Pouliot is first vice president / mortgage manager at the Federal Home Loan Bank of Boston.

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