FHFA Extends Deadline For Commenting on UMBS Pooling Practices


The Federal Housing Finance Agency (FHFA) has extended the deadline for interested parties to provide input on potential changes to Fannie Mae and Freddie Mac Uniform Mortgage-Backed Security (UMBS) pooling practices.

The new deadline is Jan. 21, 2020.

The FHFA is seeking input on the government-sponsored enterprises’ (GSEs) pooling practices for the formulation of “To-Be-Announced” (TBA)-eligible UMBS.

The FHFA is also seeking public input about other policies and practices that might affect UMBS fungibility, including the GSEs’ oversight of UMBS prepayment speeds and alignment.

The GSEs officially began issuing the single common security in June, however, it had been in the works for several years. It was originally set to go live in 2018 but its development faced numerous delays.

At the time of the launch, Robert Fishman, deputy director of the FHFA, said the new UMBS was a “significant milestone that combines the separate Fannie Mae and Freddie Mac To-Be-Announced markets into one, bringing additional liquidity and efficiency to the market.

“By addressing structural issues and trading disparities, the UMBS will benefit taxpayers and the nation’s housing finance system,” Fishman said.

Input should be submitted electronically (select “UMBS Pooling Practices” in pull-down menu) or via mail by Jan. 21, 2020 to the Federal Housing Finance Agency, Division of Conservatorship, 400 7th Street, S.W., 8th floor, Washington, D.C., 20219. 

Leave a Comment

Notify of