Comments due on FHFA UMBS proposal
The Federal Housing Finance Agency has announced its issuance of a proposed rule to require Fannie Mae and Freddie Mac (the Enterprises) to align programs, policies, and practices that affect the prepayment rates of “To-Be-Announced" (TBA)-eligible mortgage-backed securities (MBS). The objective of the proposed rule is to enhance the overall liquidity of Enterprise TBA-eligible MBS by supporting their fungibility (mutual interchangeability) without regard to which Enterprise is the issuer. The rule would apply to both the Enterprises' current offerings of TBA-eligible MBS and to the new Uniform Mortgage-Backed Security (UMBS) which will be implemented in June 2019. Comments will be accepted for 60 days following publication in the Federal Register.
UPDATE: Published at 83 FR 46889 on 9/17/18. Comments close 11/16/18.