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MBA Responds To FHFA’s Conditional Approval Of Freddie Mac’s Proposal To Purchase Single-Family Closed-End Second Mortgages

MBA’s President and CEO Bob Broeksmit, CMB, issued the following statement regarding the Federal Housing Finance Agency’s (FHFA) conditional approval of Freddie Mac’s new proposal to purchase certain closed-end second mortgages:

“MBA appreciates FHFA’s detailed responsiveness to the key questions we outlined in our comment letter regarding the program’s scope, mission, and secondary market implications. FHFA’s receptiveness to feedback through the New Products and Activities Final Rule has produced a pilot rollout that is limited in size and duration, mitigates the impact on the private-label securitization market for second liens, focuses on borrowers with lower loan balances, and will encourage participation by smaller lenders that do not have easy access to liquidity for closed-end seconds.  

“MBA and its members will remain engaged with FHFA and Freddie Mac to monitor the results of the pilot and ensure that it remains available to lenders of all sizes and business models and avoids disrupting the developing private-label securitization market for second liens.”