Fannie Mae-No Politics (FNMA)

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GSEs’ Single Security on Track for Implementation June 3. Otting Supports it 100%

By Brandon Ivey

The government-sponsored enterprises’ single-security initiative, a project several years in the making, is largely on track to launch June 3, according to industry participants.

Speaking Sunday at the SFIG Vegas conference produced by the Structured Finance Industry Group, Mary Ellen Taylor, an associate director for the division of conservatorship at the Federal Housing Finance Agency, provided an update on the single security, also known as the Uniform Mortgage-Backed Security or UMBS.

She noted that a few loose ends remain, including delivery guidelines from the Securities Industry and Financial Markets Association that are expected in March and a final rule from the FHFA regarding standards for consistent prepayment rates between Fannie Mae and Freddie Mac.

Taylor added that Joseph Otting, the acting director of the FHFA, is “100 percent” behind the UMBS effort. She also said the project aims to increase liquidity in the to-be announced MBS market and is not an effort to combine Fannie and Freddie into one entity.

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