(RECAP: The largest trade group in the mortgage finance space, the Mortgage Bankers Association, released its initial plans for its recommended approach for secondary mortgage market reform, unveiling the first product from its recently formed “task force,” made up of some of the top lenders and insurers in the industry. The paper is a first look at the MBA’s plans for ending the conservatorship of Fannie and Freddie, the government-sponsored enterprises, with the full paper anticipated to come in April. Under the MBA’s plans, the entities’ purpose would be to provide sustainable credit availability to the conventional single family and multifamily mortgage market and provide equitable access to lenders of all sizes and business models. A huge difference between today’s model and the MBA’s proposed plot is the government guarantee would only be for the securities and not the entities issuing them.)

Powered by WPeMatico