The Federal Housing Finance Agency (FHFA) issued a final rule
that requires Fannie Mae and Freddie Mac to align their respective programs, policies and practices that affect the cash flows of To-Be-Announced (TBA)-eligible mortgage-backed securities (MBS).
The final rule, which goes into effect 60 days after its publication in the Federal Register, will apply to the government-sponsored enterprises’ (GSEs) current offerings of TBA-eligible MBS and to the new Uniform Mortgage-Backed Security (UMBS) which Fannie Mae and Freddie Mac will begin to issue in June. The FHFA also noted in the preamble to the final rule that the GSEs will be required to lower their maximum mortgage note rate eligible for inclusion in an MBS.
“This rule demonstrates FHFA's commitment to the success of the UMBS, which will promote liquidity and efficiency in the secondary mortgage market," said FHFA Acting Director Joseph Otting.