Oct. 10, 2012 – NAFCU was at the Federal Housing Finance Agency Tuesday to discuss a recently unveiled proposal for a new single securitization platform designed to serve the government-sponsored enterprises and preserve access to the secondary market.
FHFA believes the new platform could be put in place immediately and is also adaptable to conform to the future secondary market when conservatorship of the GSEs comes to an end. A white paper released Oct. 4 outlines how the new securitization platform will work as well as a contractual framework that supports the new infrastructure.
Those plans are also included in an updated strategic plan released by the FHFA Tuesday. The 31-page plan, which revises the agency’s strategic plan released in February, contains four general goals: to return the government-sponsored enterprises to a safe and sound status; to preserve and conserve GSE assets; ensure housing finance stability, liquidity and access; and prepare for the future of housing finance.
NAFCU Regulatory Affairs Counsel Tessema Tefferi and NAFCU Senior Associate Director of Legislative Affairs Jillian Pevo attended a meeting at the FHFA yesterday about the agency’s plans. A key focus of the meeting was a discussion on the specifics of how the FHFA plan will ensure that credit unions and other small lenders do not have difficulty accessing the secondary market during any housing reform transition period.
While NAFCU appreciates that FHFA has acknowledged the necessity to keep Fannie and Freddie viable until an appropriate transition is in place, the association remains concerned. The white paper is silent on what role, if any, a government guarantee will play as part of the future housing finance system. It also remains unclear how the new securitization platform proposed would be harmonized with future housing finance scenarios.
FHFA is accepting comments on the proposal until Dec. 3. Input may be submitted via email to SecuritizationInfrastructure@fhfa.gov or directly on FHFA’s website.
NAFCU will be submitting its own comment letter on the proposal.