In the beginning of the classic 1989 film, Back to the Future: Part II, 17-year-old protagonist Marty McFly travels 30 years into the future to visit his grownup self in the year 2015.
FHFA puts Dec. 31 deadline on securitization plan
The Federal Housing Finance Agency (FHFA) announced a deadline of Dec. 31, 2012 for the implementation of a new securitization platform.
FHFA, securitization, mortgages, scorecard, GSEs, plan, deadline
The Federal Housing Finance Agency (FHFA) announced a deadline of Dec. 31, 2012 for the implementation of a new securitization platform. This new secondary market would serve both Fannie Mae and Freddie Mac mortgages, along with a post-conservatorship market with multiple future issuers.
FHFA’s announcement was connected to a conservatorship scorecard released Friday, outlining a potential execution plan for the agency’s ultimate goal: reducing the dominance of government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac in the housing market.
The securitization plan, announced by FHFA last month, is one part of the agency’s overall mission to improve the national mortgage finance situation. The scorecard details other measures the agency will encourage GSEs to follow, including:
- Other mortgage market enhancement activities
- Contracting their dominant presence in the marketplace while shrinking certain operations
- Maintaining foreclosure prevention activities and credit availability for new and refinanced mortgage
The agency reports that Fannie Mae and Freddie Mac alone currently provide $5.7 trillion in mortgage financing.
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