MBA, Trade Groups Urge Caution on FHFA Proposed Changes to GSE UMBS Pooling Practices

The Mortgage Bankers Association, in a Jan. 21 letter to Federal Housing Finance Agency Director Mark Calabria, urged caution on a proposed “waterfall approach” to pooling practices used by Fannie Mae and Freddie Mac in the Uniform Mortgage-Backed Security market, saying in its current form the proposal could have a “negative effect” on market liquidity, raise borrowing costs and reduce access to credit.

MBA, Trade Groups Urge FHFA to Use Caution on Changes to GSE UMBS Pooling Practices

The Mortgage Bankers Association, in a letter to Federal Housing Finance Agency Director Mark Calabria, urged caution on a proposed “waterfall approach” to pooling practices used by Fannie Mae and Freddie Mac in the Uniform Mortgage-Backed Security market, saying in its current form the proposal could have a “negative effect” on market liquidity, raise borrowing costs and reduce access to credit.

MBA Advocacy Update

On December 23, MBA sent a letter to Ginnie Mae offering recommendations on how the agency can improve its upcoming Digital Collateral Guide. Last week, the U.S. Department of Homeland Security and the New York Department of Financial Services both issued warnings alerting companies to potential cybersecurity risks. And on December 20, the Georgia Department of Banking and Finance finalized rules regarding mortgage loan originator temporary authority.