CUNA applauds FHFA efforts to address pre-launch UMBS concerns
CUNA applauds the Federal Housing Finance Agency (FHFA) efforts to address investor concerns surrounding the Uniform Mortgage-Backed Security (UMBS) before the security is launched in the to-be-announced market on June 9, 2019. CUNA filed its letter with the agency Thursday in response to a proposed rule on the uniform security.
“Given the importance of the TBA market to credit unions and their members, CUNA is pleased that the FHFA has released proposed regulation in advance of the UMBS launch date that seeks to establish a procedure for addressing investor concerns about the potential for price variation between the entities’ offerings due to misalignments in their activities,” the letter reads.
“Because a key component of CUNA members’ Credit Union Principles for Housing Finance Reform is ensuring that the transition from the current system to any new housing finance system is reasonable and orderly, we encourage the Agency to continue its efforts and fully address stakeholders’ concerns prior to requiring the GSEs to launch the UMBS,” it adds.
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