FHFA Solicits Comments on Proposed Rule on Prepayment Rates and the UMBS
September 17, 2018
The Federal Housing Finance Agency (FHFA) has issued a press release calling for public input on a proposed rule to require Freddie Mac and Fannie Mae to align programs, policies, and practices that affect the prepayment rates of “To-Be-Announced" eligible mortgage-backed securities.
This alignment is key to the success of the Single Security Initiative because it supports the fungibility of the Uniform Mortgage-Backed Security™ (UMBS™) which Freddie Mac and Fannie Mae will begin issuing on June 3, 2019.
FHFA is giving interested parties 60 days to provide feedback. More details can be found in the FHFA announcement.