Federal Home Loan Bank of Chicago

What Federal Home Loan Bank of Chicago does

Federal Home Loan Bank of Chicago is one of eleven government-sponsored enterprises created under the Federal Home Loan Bank Act of 1932, operating as a cooperative chartered and regulated by the Federal Housing Finance Agency. The Bank serves 637 member financial institutions across Illinois and Wisconsin, including commercial banks, credit unions, thrifts, and insurance companies, providing wholesale funding, secondary mortgage market access, and community investment programs. Its core product is the advance, a secured loan through which members access competitively priced liquidity; advances outstanding totaled $61.1 billion against total assets of $141.2 billion as of 2025. The Bank also operates the Mortgage Partnership Finance (MPF) Program, a secondary mortgage market platform that allows participating financial institutions to sell, service, and share credit risk on residential mortgage loans across multiple risk-sharing structures (MPF Original, MPF 125, MPF 35, MPF Xtra, and the newly launched MPF Habitat for Humanity Program).

The Bank generates revenue primarily through net interest income on its advance portfolio and consolidated obligation bond funding, supplemented by fee income from the MPF Program (credit enhancement fees of 6–12 bps and servicing fees of 25–44 bps annualized) and program-related charges. As a cooperative, profits are largely returned to members through dividends on Class B1 activity stock (8.75% annualized as of Q4 2023) and Class B2 membership stock (5.125% annualized), which the Bank estimates lowers members' all-in borrowing costs by approximately 14.85 basis points. Distribution occurs through dedicated Sales Directors, a Member Transaction Desk, and member-facing platforms including eBanking, eMPF, and eMAQCS. Community investment programs — including the Affordable Housing Program, Downpayment Plus (up to $10,000 per borrower), the Community First Developer Program, and the Housing Counseling Resource Program — are delivered through member institutions and channel partners such as the Illinois Housing Development Authority (IHDA) and the Wisconsin Housing and Economic Development Authority (WHEDA), with $106 million in grants disbursed alongside core lending activity. Michael A. Ericson serves as President and CEO.

Name

Federal Home Loan Bank of Chicago

Legal name

Federal Home Loan Bank of Chicago

Website

https://fhlbc.com

Company type

Private

Founded year

1932

Operating status

Operating

Headcount range

251–500 employees

Short description

Federal Home Loan Bank of Chicago is a federally chartered GSE and cooperative that provides wholesale funding (advances), secondary mortgage market access (MPF Program), and community investment grants to 637 member financial institutions across Illinois and Wisconsin.

Ownership category

akta.pro rank

Product category

Wholesale Cooperative Banking

NAICS

Depository Credit Intermediation (5221), Savings Institutions and Other Depository Credit Intermediation (522180)

SIC

Federal & Federally-Sponsored Credit Agencies (6111)

akta.pro industry

PRIMARYFSALAKAC

Government-Sponsored Enterprises (GSEs) & Government Mortgage Liquidity Providers

Financial & Insurance/Mortgage & Housing Finance/Housing Finance Agencies & Government-Sponsored Housing Programs

SECONDARYFSALADAD

Agency (GSE) Multifamily Lending

Financial & Insurance/Mortgage & Housing Finance/Commercial & Multifamily Mortgage Lending

SECONDARYFSALAKAD

Public Mortgage Insurance & Government Credit Guarantee Programs

Financial & Insurance/Mortgage & Housing Finance/Housing Finance Agencies & Government-Sponsored Housing Programs

Keywords

• Wholesale funding solutions
• Cooperative banking services
• Secondary mortgage market
• Affordable housing finance
• Community development lending

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales, Others

Revenue model

1. Advances (Secured Loans): The primary revenue source is providing secured loans (advances) to member financial institutions. Advances are the main way FHLBank Chicago provides funding to members. Revenue is generated through interest income on advance balances outstanding ($61.1B as reported on homepage). The cooperative model means profits flow back to members via dividends rather than being retained.
2. Mortgage Partnership Finance (MPF) Program Fees: The MPF Program generates fee income from Participating Financial Institutions through credit enhancement fees, delivery commitment fees, and other program-related charges. PFIs earn credit enhancement fee income (6-12 basis points) for sharing in credit risk on mortgage loans sold under the MPF Traditional products.
3. Dividend Returns to Members: As a cooperative, FHLBank Chicago pays dividends on Class B1 activity stock (8.75% annualized as of Q4 2023) and Class B2 membership stock (5.125% annualized). The dividend effectively lowers members' all-in borrowing costs by approximately 14.85 basis points, creating a competitive advantage for member institutions.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels7 records

Core offering

Federal Home Loan Bank of Chicago is a government-sponsored cooperative that provides secured loans (advances) to its 637 member financial institutions in Illinois and Wisconsin, enabling them to fund local lending. It also operates the Mortgage Partnership Finance (MPF) Program, a secondary mortgage market platform where members can sell, service, and share credit risk on residential mortgage loans. Profits flow back to members through quarterly dividends on activity and membership stock.

Product overview

Federal Home Loan Bank of Chicago operates as a cooperative providing funding and community investment programs to member financial institutions in Illinois and Wisconsin. The company's product portfolio centers on its core lending products (Advances, Community Advance, Letters of Credit), the Mortgage Partnership Finance (MPF) Program for secondary mortgage market access (including MPF Original, MPF 125, MPF 35, MPF Xtra, and the new MPF Habitat for Humanity Program), and community investment grant programs (Affordable Housing Program, Downpayment Plus Programs, Developer Program, Housing Counseling Resource Program, Community First Fund). Member institutions access these products through eBanking and eMPF platforms. Supporting offerings include MPF University for professional education and the Banking on Connections podcast for industry insights.

Differentiator

Problem solved

Functional benefit

Brands

• Community First: A brand encompassing community investment programs including Community First Fund, Community First Developer Program, and Community First Accelerate Grants for Small Business
• Downpayment Plus
• Mortgage Partnership Finance (MPF)
• Banking on Connections

Products and services

• Advances Secured loans provided to member financial institutions to support funding needs and optimize liquidity for community lending. Includes fixed-rate, floating-rate, callable, and amortizing advance structures for interest rate risk and balance sheet management.
• Community Advance Discounted advances (50 bps below regular rates for affordable housing purchase and refinance; up to 200 bps below for affordable housing construction or rehabilitation) provided to member institutions to fund affordable housing and community development lending.
• Letters of Credit Credit instruments issued to support members' liquidity and operational needs, including public unit deposits and collateral pledging requirements.
• Mortgage Partnership Finance (MPF) Program Secondary mortgage market program that enables Participating Financial Institutions (PFIs) to sell residential mortgage loans while sharing credit risk with FHLBank Chicago and retaining servicing rights. Encompasses MPF Original, MPF 125, MPF 35, MPF Xtra, MPF Government, and MPF Habitat for Humanity sub-products.
• MPF Original MPF Traditional product where PFIs share credit risk and receive credit enhancement fee income of 6-12 basis points, with a 4 bps per annum first loss account and a 5-year credit enhancement reset.
• MPF 125 MPF product with a 100 bps first loss account, offering credit enhancement obligation and fee income for PFIs sharing credit risk on conventional mortgage loans.
• MPF 35 MPF product with a 35 bps first loss account, providing credit risk sharing with credit enhancement fee income for PFIs.
• MPF Xtra MPF product featuring loan-level price adjustments, best efforts delivery commitments, next-day funding, and A/A remittance-only option for PFIs seeking streamlined execution.
• MPF Habitat for Humanity Program Specialized MPF product enabling approved FHLBank Chicago members to deliver loans originated for Habitat for Humanity homebuyers at approximately 250 basis points below market rate, combining interest rate subsidies, flexible underwriting, and secondary market access.
• Community First Fund Community investment program that supports small businesses and affordable housing initiatives across Illinois and Wisconsin through member financial institutions.
• Affordable Housing Program (AHP) General Fund Competitive grant program supporting affordable housing development and homeownership opportunities through member financial institutions and their community partners.
• Downpayment Plus (DPP) Programs Downpayment Plus (DPP) and Downpayment Plus Advantage (DPP Advantage) programs that provide down payment and closing cost assistance of up to $10,000 for income-eligible homebuyers (at or below 80% of Area Median Income) through member financial institutions.
• Community First Developer Program Program that funds paid internships and fellowships for emerging affordable housing developers through member financial institutions, strengthening career pathways and the affordable housing development workforce in Illinois and Wisconsin.
• Housing Counseling Resource Program Grant program that funds housing counseling agencies to provide financial education, credit preparation, homebuyer support, and foreclosure prevention services, distributed via state housing agency partners (IHDA in Illinois and WHEDA in Wisconsin).

Quantifiable outcome

• $106 million in housing and economic development grants distributed to communities
• +4 more outcomes

Named customers6 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Nine partnerships are on record, tiered core.

• Associated BankcoreStrategic or Co-development Partner · 7 May 2026FHLBank Chicago, in partnership with member Associated Bank, awarded $375,000 through its Community First Developer Program to two nonprofit organizations in Illinois and Wisconsin. The grants support paid internships and fellowships for emerging affordable housing developers, addressing a shortage of experienced development professionals while helping communities meet increasing demand for affordable housing.
• Spring BankcoreStrategic or Co-development Partner · 23 February 2026FHLBank Chicago, in partnership with member Spring Bank, awarded two $250,000 grants to Milwaukee-based developers AK Development and Milwaukee Development Corporation through the Community First Developer Program. Grants support paid internships and fellowships for emerging affordable housing professionals in Wisconsin, including transforming a former hospital into senior housing.
• Habitat for Humanity of the Greater La Crosse RegioncoreStrategic or Co-development Partner · 9 February 2026FHLBank Chicago appointed Kahya Fox, Executive Director of Habitat for Humanity of the Greater La Crosse Region, to its Community Investment Advisory Council for a three-year term. Kahya Fox brings over 20 years of housing and community development experience and will help guide programs supporting affordable housing and community investment across Illinois and Wisconsin.
• Wisconsin Housing and Economic Development Authority (WHEDA)coreStrategic or Co-development Partner · 9 December 2025FHLBank Chicago invested $2.5 million in 2025 to support WHEDA in expanding housing counseling services across Wisconsin. The funding assists families with financial education, credit preparation, homebuyer support, and foreclosure prevention, benefiting over 14,000 households.
• Illinois Housing Development Authority (IHDA)coreStrategic or Co-development Partner · 22 October 2025FHLBank Chicago awarded $3,150,000 in 2025 funding to IHDA to support housing counseling programs across Illinois. The program assists households with financial education, credit readiness, and homeownership support, benefiting over 49,000 households.
• Council of Federal Home Loan BankscoreStrategic or Co-development PartnerThe Council of FHLBanks provides system-wide advocacy and represents the collective interests of all eleven Federal Home Loan Banks. FHLBank Chicago participates in Council initiatives and its CEO Ryan Donovan appeared on the Banking on Connections podcast to discuss the FHLBank system's role and advocacy work.
• Chicagoland Habitat for HumanitycoreStrategic or Co-development PartnerChicagoland Habitat for Humanity participates in the MPF Habitat for Humanity Program, enabling approved FHLBank Chicago members to originate loans for Habitat homebuyers at approximately 250 bps below market rate. CEO Sarah Brachle Wagner appeared on the Banking on Connections podcast to discuss the program.
• Habitat for Humanity of WisconsincoreStrategic or Co-development PartnerHabitat for Humanity of Wisconsin participates in the MPF Habitat for Humanity Program. CEO Peter Lewandowski appeared on the Banking on Connections podcast to discuss rising construction costs, land challenges, and how the MPF program helps affiliates access capital more quickly.
• Mortgage Bankers Association (MBA)coreStrategic or Co-development PartnerFHLBank Chicago partners with the MBA to provide access to over 160 residential mortgage courses through MBA's TOPCLASS platform as part of MPF University. The partnership offers complimentary MBA certifications including CRU, RCMS, CMCP, and RLP to participating financial institutions and their employees.

Scale indicators12 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• Freddie Mac: Like Fannie Mae, Freddie Mac is a federally chartered GSE providing secondary mortgage market liquidity; comparable to the FHLB system as a government-sponsored mortgage liquidity provider, though broader in geographic scope and securitization focus.
• Fannie Mae: Federal Home Loan Bank of Chicago is one of 11 FHLBs, while Fannie Mae is a larger GSE that provides secondary mortgage market liquidity nationwide; both serve as government-sponsored liquidity providers for residential mortgage finance.
• Ginnie Mae: A U.S. government agency that guarantees mortgage-backed securities; comparable to FHLBank Chicago's MPF Government products and to the broader role of government-sponsored mortgage credit enhancement programs.
• Federal Housing Administration: Federal agency providing mortgage insurance that complements MPF Government products and aligns with FHLBank Chicago's affordable housing mission; both participate in the federally backed mortgage credit ecosystem.

Direct peers

• Federal Home Loan Bank of Cincinnati: Another FHLB in the same cooperative system; offers advances and community investment programs to member institutions in Kentucky, Ohio, Tennessee, and adjacent states, providing a directly comparable regional funding model.
• Federal Home Loan Bank of Indianapolis: Direct FHLB peer serving Indiana and Michigan members with the same advances, MPF, and AHP product suite under identical GSE structure and regulatory oversight.
• Federal Home Loan Bank of Atlanta: Another of the 11 Federal Home Loan Banks; operates the same cooperative wholesale funding and MPF-style secondary mortgage market model in the Southeast under identical GSE charter and FHFA oversight.
• Federal Home Loan Bank of Des Moines: Direct peer among the 11 FHLBs, serving members in Iowa, Minnesota, Missouri, North Dakota, South Dakota, and Wisconsin (overlapping territory with FHLBank Chicago) with advances, MPF, and community investment programs.
• Federal Home Loan Bank of New York: Another of the 11 FHLBs serving members in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands; operates under the same GSE charter with advances, MPF, and community investment programs as FHLBank Chicago.

Others

• Council of Federal Home Loan Banks: Industry trade association representing all 11 FHLBs; FHLBank Chicago is a member and the Council coordinates system-wide advocacy, joint debt issuance infrastructure, and policy work on behalf of the cooperative system.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/FHLBC
• LinkedInlinkedin.com/company/federal-home-loan-bank-of-chicag
• Facebookfacebook.com/FHLBC
• Instagraminstagram.com/fhlbankchicago
• YouTubeyoutube.com/fhlbankchicago

Revenue estimate

Valuation estimate

Number of profiles

Profiles17 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments5 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Federal Home Loan Bank of Chicago