Washington Report

Advocacy Updates from Washington D.C.

NAR Supports Efforts To Improve Credit Liquidity

On Oct. 13, 2014, NAR submitted comments on the Federal Housing Finance Agencies proposal to create a Single Security that could be guaranteed by either Fannie Mae or Freddie Mac (the government-sponsored enterprises or GSEs).  The multi-year development of a single GSE mortgage backed security (Single Security) is part of the development of the common secondary mortgage market securitization platform being developed by FHFA and the GSEs.  NAR has supported the development of the securitization structure, which functions like a utility, since last year.  Having a single GSE MBS should increase liquidity of these securities in the market, increasing demand and producing better pricing.

In the letter to FHFA Director Mel Watt, NAR President requests FHFA carefully monitor potential pricing inefficiencies to ensure that implementation and issuance of the Single Security benefits borrowers.  Most importantly, this process should not impede a borrower’s ability to ‘lock in’ an interest rate ahead of settlement of their home purchase and contribute to lower mortgage rates through increased liquidity a Single Security.

NAR Letter On Single GSE Security

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