ATLANTA, May 14 /PRNewswire/ -- Federal Home Loan Bank of Atlanta
(FHLBank Atlanta) announced today that it will participate in a new program
that will help community financial institutions sell residential mortgage
loans into the secondary mortgage market.
(Photo: http://www.newscom.com/cgi-bin/prnh/20070514/CLM117 )
FHLBank Atlanta's regulator - the Federal Housing Finance Board - has
approved FHLBank Atlanta's participation in the Global Mortgage Alliance
(GMA), which will create a valuable alternative in the secondary market
without requiring the Bank to commit capital or guarantee the
creditworthiness of loans that are packaged and sold as securities.
"GMA represents an important evolution of the Bank's liquidity mission
for its members," said FHLBank Atlanta Interim President and CEO William H.
Ott, Jr. "One of the great benefits of this program is that it rewards
members for the quality of their credit underwriting, without exposing the
Bank to the additional risks associated with placing the mortgages on its
balance sheet."
Global Mortgage Alliance, LLC (GMA LLC), an affiliate of Hillenbrand
Partners and a member of FHLBank Atlanta, developed the Global Mortgage
Alliance program to continue FHLBank Atlanta's mission of providing
liquidity to member financial institutions, many of which traditionally
have limited options for selling mortgage loans in the secondary market.
FHLBank Atlanta will market the program to member institutions, handle
processing duties, and perform other back office operations. GMA LLC will
purchase fixed-rate, conforming residential mortgages from other members of
FHLBank Atlanta, including community banks, savings institutions, and
credit unions.
"We are very pleased with the opportunity to work with the Federal Home
Bank of Atlanta, which is such a valuable resource for community financial
institutions that engage in residential mortgage lending," said Eric M.
Hillenbrand, Managing Partner and Chief Executive Officer of Hillenbrand
Capital. "The alliance will offer these institutions a way to unlock the
value of their high-quality credit underwriting."
About FHLBank Atlanta
FHLBank Atlanta is a financial services organization that provides low-
cost funding, community development grants, and other banking services to
more than 1,200 financial institutions in Alabama, Florida, Georgia,
Maryland, North Carolina, South Carolina, Virginia, and the District of
Columbia. FHLBank Atlanta is one of 12 district banks in the Federal Home
Loan Bank System, which since 1990 has contributed more than $2 billion to
affordable housing development in the United States.
Some of the statements made in this press release may be
"forward-looking statements," including those that relate to Global
Mortgage Alliance, which include statements with respect to FHLBank
Atlanta's beliefs, plans, objectives, goals, expectations, anticipations,
assumptions, estimates, intentions, and future performance, and involve
known and unknown risks, uncertainties and other factors, many of which may
be beyond FHLBank Atlanta's control, and which may cause FHLBank Atlanta's
actual results, performance or achievements to be materially different from
future results, performance or achievements expressed or implied by the
forward-looking statements. The forward-looking statements may not be
realized due to a variety of factors, including: future economic and market
conditions; changes in demand for advances or consolidated obligation;
changes in interest rates; legislative and regulatory changes; political,
national and world events; and adverse developments or events affecting or
involving other FHLBanks or the FHLBank System in general. Additional
factors that might cause FHLBank Atlanta's results to differ from these
forward-looking statements are provided in detail in our filings with the
Securities and Exchange Commission, available through FHLBank Atlanta's
website at http://www.fhlbatl.com.
SOURCE Federal Home Loan Bank of Atlanta
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Related links:
http://www.fhlbatl.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20070514/CLM117
AP Archive: http://photoarchive.ap.org AP PhotoExpress
Network: PRN8 PRN Photo Desk, photodesk@prnewswire.com
http://www.prnewswire.com/comp/149931.html/
CONTACT:
Christopher McEntee of Federal Home Loan Bank
of Atlanta, +1-404-888-8158, cmcentee@fhlbatl.com
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