MILL VALLEY, CA—Redwood Trust, Inc. says it has agreed with the Federal Home Loan Bank of Chicago (FHLBC) to establish MPF Direct, a new mortgage purchase product offered by the Mortgage Partnership Finance (MPF) Program.

MPF Direct will allow members of a Federal Home Loan Bank that participate in the MPF Program to deliver eligible residential high-balance mortgage loans through the MPF Program’s operational platform to subsidiaries of Redwood Trust. Under the agreement, Redwood Trust will be the sole investor in MPF Direct loans for a period of three years. The launch of MPF Direct is subject to the final regulatory approval from the Federal Housing Finance Agency.   

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