WBK Industry - Federal Regulatory Developments

FHFA Authorizes GSEs to Support Liquidity in Secondary Mortgage Market

On March 23, 2020, the FHFA authorized Fannie Mae and Freddie Mac to provide additional liquidity to investors in mortgage backed securities.  “Eligible collateral is limited to Agency mortgage-backed securities and the transactions must be undertaken via an auction or similar mechanism to ensure that they occur at a fair market price.”