WASHINGTON—The Federal Housing Finance Agency (FHFA) has released a proposed rule on the uniform mortgage-backed security (UMBS) meant to improve the liquidity of Fannie Mae and Freddie Mac's to-be-announced eligible mortgage-backed securities (MBS).
In March, the FHFA announced that the government-sponsored enterprises (GSEs) would begin issuing its single security – the UMBS – June 3, 2019. The new security will take the place of TBA-eligible mortgage-backed securities and will be issued through the Common Securitizations Solutions (CSS) using the Common Securitization Platform (CSP), NAFCU explained.
In November 2016, Freddie Mac began using CSP software for certain activities related to current single-class, fixed-rate, MBS. This was done in conjunction with the CSS, a limited-liability company created by Freddie Mac and Fannie Mae, NAFCU explained, adding that it supports standardization and uniformity in the MBS market.