NAR Submits Comments on FHFA Securitization Platform
Earlier this year, the Federal Housing Finance Agency (FHFA, the conservator of Fannie Mae and Freddie Mac (the GSEs) released a white paper on the creation of a common secondary market securitization platform to begin the process of GSE Reform. This infrastructure is being developed as part of FHFA’s strategic plan and includes the creation of a model pooling and servicing agreement that will dictate the responsibility of mortgage loan originators.
NAR submitted comments on Dec. 3, 2012 supporting a self-sufficient infrastructure whereby safe, sound, transparent, and insured MBS may be packaged and sold. Additionally, REALTORS® recommend the improvement of loan level and mortgage pool disclosures to market participants to enhance opportunities for private capital participation. This data is an essential foundation for investors to efficiently analyze and price mortgage credit risk.
NAR is supportive of FHFA’s attempt to bring standardization, stability and confidence in the mortgage market space to facilitate the return of private sources of capital to the housing finance system.