Frequently Asked Questions

Who is eligible to participate in GMA?

An institution must be a Federal Home Loan Bank member to participate in GMA.

What types of loans does GMA buy?

GMA will purchase eligible first mortgage loans secured by Single family residences, two-to- four family dwellings, Condominium units in a project meeting GMA criteria, and properties in planned unit developments (PUDs) in projects meeting GMA criteria. Properties must be owner-occupied, second homes, or investor.

Loans that meet the following criteria may be sold to GMA:

First lien Deeds of Trust or mortgages;
Fixed Rate level payment loans;
Original terms up to but not greater than 30 years;
Not more than 12 months old from origination date at time of purchase without
  prior written approval;
Contain no adjustable rate mortgages, or graduated payment mortgages;
Contain no mortgages with bi-weekly payments, or negative amortization or interest only features;
Do not contain prepayment penalties;
Do not require mandatory arbitration;
Comply with the provisions of GMA Guidelines to Promote Responsible Lending;

Who services Loans sold to GMA?

The member may choose to retain the servicing, utilize a GMA approved sub-servicer, or sell the servicing to another GMA approved servicer. This allows members to choose their desired income stream and accounting processes.

How are loans sold to GMA?

GMA utilizes e-GMA, a proprietary loan delivery system that allows participants to view pricing, create commitments, and deliver loans to GMA, in each case via an automated secure internet portal. Upon receipt of initial certification of loan delivery files by the document custodian, the member is funded on the settlement date via their Federal Home Loan Bank GMA deposit account. e-GMA will also facilitate certain post-purchase functions such as data exchange with third party providers and document custodians, and investor reporting and remittance processes with the master servicer.

GMA is designed to compliment existing mortgage operations utilized by members with key features such as:

1. Underwriting and servicing standards similar to FHLBank programs, Fannie Mae, and Freddie Mac guidelines.
2. Delegated underwriting facilitated by Loan Prospector™ or Desktop Underwriter™.
3. Current FHLBank relationships with members that will facilitate an easy transition from existing programs to GMA.

What is the role of the FHLBanks?

The FHLBanks provide services such as identifying potential participants and marketing the program, facilitating the sale of mortgage loans, coordinating continued participation in the program, and facilitating transactions related to the servicing of the loans. The FHLBanks will not guarantee payment of principal and interest on the underlying mortgage loans or securities backed by such loans, or leverage its government sponsored enterprise ("GSE") borrowing privileges or capital. GMA is not an investment program for the FHLBanks and no mortgage loans will reside on the Bank's balance sheet as a result of its participation in the program.

GMA is well positioned to distribute GMA securities to investors, both domestically and internationally, thus transferring funds from the global capital markets to local communities in support of the FHLB System's housing finance mission.