INDIANAPOLIS, June 11, 2026 (GLOBE NEWSWIRE) — In a testament to its longtime mission of providing reliable liquidity and supporting housing across Indiana and Michigan, the Federal Home Loan Bank of Indianapolis (“FHLBank Indianapolis” or the “Bank”) recently surpassed $50 billion in residential loan purchases through its Mortgage Purchase Program (MPP).
Launched in 2001 as a secondary market option, MPP has helped member financial institutions throughout Indiana and Michigan obtain competitive mortgage pricing and manage their balance sheets. Over the past 25 years, the Bank has secured its place as a valued secondary market alternative for the Bank’s members, many of whom tend to be smaller community-based lenders.
“We are extremely proud of the value our MPP has provided our members over the years, and the fact that our members helped us cross this threshold during National Affordable Housing Month in May makes it all the more special,” said John D. Bingham, SVP, MPP and Corporate Communications. “This achievement is proof of our continued commitment to our mission in elevating and expanding housing opportunities for communities across our district of Indiana and Michigan.”
He added: “While hitting the $50 billion benchmark is impressive, the hidden story is the positive effect in our district. The more business our members do with us, the more money we can give back to their communities. In addition to the statutory AHP assessment of 10% of our net earnings, we have committed to allocating 7.5% of last year’s net earnings for affordable housing support and community development initiatives, making us one of the largest private supporters in those spaces in Indiana and Michigan.”
About 20% of the Bank’s active sellers are small community banks and credit unions that don’t have access to the secondary market, Bingham said, making the program especially valuable to member financial institutions in rural and underserved areas.
Springs Valley Bank & Trust Co., a Southern Indiana community bank in Jasper, Ind., (population: 17,000) and one of the Bank’s first MPP participants, has delivered loans through MPP every quarter since the program’s inception.
“Springs Valley has remained a committed participant in the MPP because the program continues to deliver meaningful value to both our institution and the communities we serve,” said J. Craig Buse, president and CEO of Springs Valley. “The consistency of MPP allows us to offer a range of lending solutions that help local families reach their financial goals.”
Buse added: “Through our ongoing partnership, we’re able to support economic growth in the markets we serve by keeping mortgage capital circulating locally, helping create stability and opportunity for our neighbors. Our relationship with [ FHLBank Indianapolis ] plays an important role in allowing us to carry out our mission of building a strong, thriving community for generations to come.”
Fast facts: Mortgage Purchase Program
- The Bank closed 2025 with $2.9 billion in mortgage purchases, the third-highest volume in MPP history.
- MPP uses a Lender Risk Account (LRA) to support credit enhancement for the loan purchases. As loans continue to perform, funds in the LRA are released back to the original loan seller as an inherent benefit to the selling institutions.
- The Bank crossed the $50 billion mortgage purchase threshold in May, recognized annually as National Affordable Housing Month, where the nation celebrates expanding housing access, affordability and opportunity for families.
Learn more: Mortgage Purchase Program (Advantage MPP) | FHLBank of Indianapolis
Media contact: For more information, contact John D. Bingham, SVP, MPP and Corporate Communications, at [email protected].
Federal Home Loan Bank of Indianapolis: Building Partnerships. Serving Communities
FHLBank Indianapolis is a regional bank in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to provide access to low-cost funding for their member financial institutions, with particular attention paid to providing solutions that support the housing and small business needs of members’ customers. FHLBanks are privately capitalized and funded, and they receive no Congressional appropriations. One of 11 independent regional cooperative banks across the U.S., FHLBank Indianapolis is owned by its Indiana and Michigan financial institution members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions.
For more information about FHLBank Indianapolis, visit www.fhlbi.com and follow the Bank on LinkedIn, and Instagram and X at @FHLBankIndy. (Please note that content the Bank shares on its website and social media is not incorporated by reference into any of its filings with the SEC unless, and only to the extent that a filing by the Bank with the SEC expressly provides to the contrary.)
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