FHLBank Indianapolis Mortgage Program Tops $50 Billion in Loan Purchases

June 11, 2026 - 21:22

The Federal Home Loan Bank of Indianapolis has reached a major milestone with its Mortgage Purchase Program, surpassing $50 billion in residential loan purchases since the program began in 2001.

The program gives member banks and credit unions across Indiana and Michigan access to secondary market liquidity for residential mortgages. This allows local lenders to free up capital so they can continue making new home loans in their communities.

John Bingham, Senior Vice President of the Mortgage Purchase Program and Corporate Communications at FHLBank Indianapolis, said the milestone reflects the program's long-term commitment to housing stability in the region. He noted that the program has helped community lenders compete with larger national institutions by providing a reliable outlet for the mortgages they originate.

The Mortgage Purchase Program buys qualifying residential loans from member institutions, which reduces the risk on their balance sheets and provides cash that can be used for new lending. This cycle helps maintain a steady flow of mortgage credit in local markets.

FHLBank Indianapolis is a cooperative owned by its member financial institutions. It provides funding and liquidity services to support housing and community development. The bank has operated the Mortgage Purchase Program for more than two decades, adapting to changing market conditions while keeping its focus on serving community lenders.