Propelling the Securitization Platform

FHFA is making progress on its new MBS securitization infrastructure and risk-transfer options, although the complexities of each of these programs continues daunting. Here, we look at FHFA’s latest report outlining its progress, noting the formidable challenges that remain, the areas where the GSEs could compete with private entities and the new challenges to senior-sub structures – once the go-to risk-transfer option. However, daunting though all this is, FHFA is undaunted and plans to hold Fannie and Freddie accountable for accelerating action in 2013 – as always an uncertain demand in the face of FHFA’s ongoing leadership vagaries.

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