Building on the demonstrated value of the Federal Home Loan Bank ("FHLBank") network, the Global Mortgage Alliance ("GMA") program represents the next generation of FHLBank mortgage programs. GMA, LLC (a member of FHLBank Atlanta, and a wholly-owned subsidiary of Hillenbrand Capital) will purchase residential mortgage loans from members of the FHLBanks and subsequently issue securities backed by the loans. The GMA program was developed as a collaborative project with GMA and the Federal Home loan Bank of Atlanta to address the challenges the FHLBanks face in their current mortgage programs.

For nearly a decade the FHLBanks have been offering mortgage liquidity to their member institutions through the direct purchase of residential whole loans in the Mortgage Partnership FinanceŽ ("MPF") and Mortgage Purchase Program "(MPP"). The absence of a viable risk transfer mechanism has left FHLBanks with the challenges of managing the interest rate and option risks of their mortgage portfolios. The difficulties of properly hedging mortgage cash flows for these mortgages retained on the FHLBanks balance sheets are magnified by complex accounting rules, regulatory pressures and reporting requirements related to SEC disclosures and the Sarbanes-Oxley Act. All of these factors serve to significantly limit the ability of FHLBanks to expand the current mortgage programs.

The evolution of GMA allows the FHLBanks to provide members with a competitive, consistent secondary mortgage liquidity alternative as a viable risk transfer mechanism that disperses financial risk more efficiently throughout the marketplace instead of within the FHLBanks. Unlike current FHLB mortgage programs, GMA eliminates capital demands and financial risks to FHLBanks while allowing them to offer a competitive mortgage program to their members, thereby eliminating existing portfolio acquisition constraints.