Today, Fannie Mae and Freddie Mac (the Enterprises) announced a reduction in the upfront fee for commingled securities to 9.375 basis points, effective April 1, 2023. This comes as the result of months-long analysis and stakeholder engagement by the Federal Housing Finance Agency (FHFA) to consider a variety of views on the fee and its potential impacts on the Uniform Mortgage-Backed Security (UMBS) market.
FHFA is dedicated to preserving the strength and resilience of the UMBS market, given the significant improvement in liquidity and stability that UMBS has afforded the To-Be-Announced (TBA) market. To support these objectives, FHFA is committed to maintaining a durable framework that will enable commingling activity to resume in a way that addresses the concerns of all stakeholders to the greatest extent possible.
As FHFA continues its review of the Enterprise Regulatory Capital Framework (ERCF) to ensure the ERCF appropriately reflects the risks of the Enterprises’ business activities including commingled securities, the Agency appreciates the constructive engagement with all market participants and is committed to ongoing dialogue on this issue.
Adam Russell Adam.Russell@FHFA.gov