Fannie Mae and Freddie Mac said mortgage lenders are increasingly familiar with their plan to begin issuing a common mortgage-backed security next year. According to a June survey, 97 percent of respondents said they are aware of the Single Security Initiative, and 80 percent indicated they understand how it will affect their functional business area.
Beginning June 3, 2019, the Uniform Mortgage-Backed Security will replace the government-sponsored enterprises’ current set of securities. Nearly nine in 10 survey respondents said their firms have assigned or plan to assign resources to implementing changes ahead of the launch date, while 58 percent have already reached out to clients.
The new security will be issued through the Common Securitization Platform, which the Federal Housing Finance Agency is preparing to launch by processing a rising number of securities. The agency last year delayed implementation of the single security until 2019.
In its “Principles for GSE Reform” white paper issued last year, ICBA advocated deferring the launch of the security until both GSEs are recapitalized and released from conservatorship.
