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NAFCU has issued a Regulatory Alert requesting member comments on the Federal Housing Finance Agency's proposed structure for a single security that would be issued and guaranteed by government-sponsored enterprises Fannie Mae and Freddie Mac.

Comments are due to NAFCU Sept. 30 and to FHFA Oct. 13.

"Currently, the Enterprises issue separate mortgage-backed securities, and Fannie Mae's Mortgage Backed Security (MBS) and Freddie Mac's Participation Certificate (PC) are not fungible with one another," the Regulatory Alert explains. "FHFA, however, is considering establishing a single security for the Enterprises."

FHFA is in the early stages of developing a single security, and the agency released this proposed structure to solicit input from all stakeholders and the public as the first-step in a multi-year process. Meanwhile NAFCU continues to advocate for ensuring government-guaranteed access to the secondary mortgage market for credit unions and pricing based on loan quality rather than volume.