Compliance Blog

Later yesterday afternoon, the Fed announced plans to begin purchasing mortgage-backed securities in January.  Read all about it here. Even better, they issued a FAQ document! (Whooo!)  Access that FAQ guidance here.

Here are three of the "questions and answers" that caught my eye. 

What securities are eligible for purchase under the program?
Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers. The program does not include CMOs, REMICs, Trust IOs/Trust POs and other mortgage derivatives or cash equivalents. Eligible assets may be purchased or sold in specified pools, in “to be announced” (TBA) transactions, and in the dollar roll market.

Who will the investment managers trade with and who is eligible to sell agency MBS to the Federal Reserve under the program?
Initially, the investment managers will trade only with primary dealers who are eligible to transact directly with the Federal Reserve Bank of New York. Primary dealers are encouraged to submit offers for themselves and for their customers.

Where should questions regarding the MBS purchase program be directed?
Questions regarding the MBS program should be directed to the New York Fed’s Public Affairs department: 212-720-6130.

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Another year has come and gone.  2008 has been a wild ride, and 2009 looks to be even better!  Here's what's on tap for all of us in the coming year:

1. Reg Z
2. UDAP

3. RESPA

Here's what's on tap for me in 2009:

1. Diapers
2. Diapers
3. Diapers

Enjoy the holiday, stay safe, and we'll see you all next week!  Even you Trojan fans!