The Federal Housing Finance Agency recently issued an update to its mortgage-backed security structure initiative, also known as Single Security. The new changes to the Single Security structure initiative are based on 23 responses to a Request for Public Input: Proposed Single Security Structure released in August 2014 by the FHFA. The Single Security initiative is still in the works for approval and has not been enacted yet.
The 2014 Conservatorship Strategic Plan for Fannie Mae and Freddie Mac consisted of creating a single MBS that the enterprises could provide finance fixed-rate mortgage loans backed by one-four single-family unit properties. Each of the enterprises will issue and guarantee first-level Single Securities backed by mortgage loans that the enterprise has acquired. The enterprises will not cross-guarantee each other’s first-level securities, and the Federal Home Loan Banks will not be an eligible issuer of Single Securities.
Chairman of the House Financial Services Housing and Insurance Subcommittee Blaine Luetkemeyer held a hearing to analyze how proposed changes to the real estate process will affect lenders and consumers. The subcommittee assessed the positive and negative aspects of changes to the real estate settlement process like the TRID rule being finalized by the Consumer Financial Protection Bureau. Luetkemeyer noted in his speech that he hopes CFPB Director Richard Cordray will meet with Members of Congress that want to see the CFPB “implement a period of restrained enforcement.”