FHFA today issued long-delayed, final standards combining many Fannie MBS and Freddie PCs into a “uniform mortgage-backed security” or UMBS.  Despite near-term implementation of the new UMBS market, many structural and pricing questions remain, all of which are sure to pose significant operational and pricing challenges to originators, servicers, and investors.  As we have noted, a receivership would lead to no new issuances of GSE securities, although legacy outstandings would have an implicit federal guarantee.

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