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News & Press: Industry News

A Single Security for Fannie and Freddie Arrives as Private Bonds Increase

Tuesday, March 19, 2019  
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The Securities Industry and Financial Markets Association voted to support a single mortgage-backed bond by Fannie and Freddie expected to be issued in June. The new single security brings together two separate securities issued by the government sponsored entities using a single security platform. The change may be a prelude to an overhaul of the mortgage industry leaders.

At the same time the Wall Street Journal reports that private financial institutions are purchasing Fannie and Freddie qualifying loans and pooling them into bonds without government backing. The Journal noted that while the number of loans securitized by private investors is still extremely small, it is growing, with private-label securities now almost triple the level of 2016.

This is another sign that whether through market forces or action by Congress, changes in mortgage finance are underway.

California Land Title Association

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