Building a New Infrastructure for the Secondary Mortgage Market
Download Document| Date Published | 2012 |
| Version | |
| Primary Author | Federal Housing Finance Agency |
| Other Authors | |
| Theme | The Secondary Market |
| Country | United States |
Abstract
The Federal Housing Finance Agency (FHFA) released for public input a white paper on a proposed framework for a common securitization platform and a model Pooling and Servicing Agreement. The white paper seeks to identify the core components of mortgage securitization that will be needed in the housing finance system going forward. Those core components are linked to two cornerstone operational features: a securitization platform to process payments and perform other functions that could be used by multiple issuers; and a contractual framework supporting the new infrastructure. The proposed infrastructure has two complementary goals: (1) replace the outmoded proprietary infrastructures of the Enterprises with a common, more efficient model; and (2) establish a framework that is consistent with multiple states of housing finance reform, including greater participation of private capital in assuming credit risk. The new platform is meant to work well with or without various degrees of government involvement.