WASHINGTON—The Federal Housing Finance Agency (FHFA) has issued a correction to its Uniform Mortgage-Backed Security (UMBS) final rule related to the inclusion of data on servicer performances.
Under the final rule – now in effect – the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, are required to issue the UMBS as the single security.
The new security was adopted in place of the GSEs' former to-be-announced-eligible mortgage-backed securities; they began issuing the UMBS June 3.
In response, NAFCU said it generally supported the proposed rule, noting that "the GSEs have been a valuable partner to credit unions, enabling them to obtain the necessary liquidity to provide new mortgages to their member-owners by utilizing the secondary mortgage market, and to manage interest rate and concentration risks."
Last week, NAFCU leaders and member credit unions met with FHFA Director Dr. Mark Calabria to discuss housing finance reform efforts, including the GSEs and the agency's work to finalize capital requirements.