Menu

Regulators propose single mortgage-backed security for Fannie and Freddie

MarketWatch, By Ruth Mantell

Looking to improve liquidity and move the ball forward on housing-finance reform, the regulator of Fannie Mae and Freddie Mac is requesting comment on creating a single mortgage-backed security for the finance giants, officials said Tuesday.

Developing a single security for mortgages backed by Fannie FNMA or Freddie FMCC will take several years, and the Federal Housing Finance Agency wants to figure out how to do so without disrupting the market, officials said. A common mortgage-backed security would improve liquidity and cut differences in the trading value between Fannie and Freddie’s security.

Read full article here: Regulators propose single mortgage-backed security for Fannie and Freddie