SIFMA Letter to FHFA on Building a New Infrastructure for Secondary Mortgage Market

SIFMA submitted a letter in response to the Federal Housing Finance Agency ("FHFA") White Paper, Building a New Infrastructure for the Secondary Mortgage Market. In the letter, SIFMA expressed support for FHFA to preserve and modernize the infrastructure of the government-sponsored enterprises, Fannie Mae and Freddie Mac. SIFMA argued that the FHFA should follow a phased approach to implementing its Strategic Plan, and give priority to the alignment of the operations of the Enterprises. This alignment is important to preserve and enhance the liquidity of the TBA market, according to the letter. In addition, SIFMA recommended that the FHFA be more specific about its intentions with regard to a number of the issues to be considered for a model Polling and Servicing Agreement ("PSA"), and that specific credit investor feedback should then be required before such proposals are codified in a model PSA to be used for transactions.

View letter in full here (links externally to SIFMA website).See also: Press Release.