Pursuits
Fannie-Freddie Overseer Proposes Uniform MBS
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Fannie Mae and Freddie Mac’s overseer is proposing the government-backed mortgage giants eventually issue home-loan bonds that look the same, in a bid to boost liquidity in the market.
The Federal Housing Finance Agency is recommending that the new securities employ the structure of Fannie Mae’s bonds, such as payments to investors 55 days after borrowers’ bills are due, rather than the 45-day timeline at Freddie Mac, according to a proposal today from the regulator. Bondholder disclosures would be based on those currently used by Freddie Mac.