Freddie Mac Delays Effective Date of Updates That Would Affect Single Security
Freddie Mac has opted to delay the effective date of Single Security updates that were originally set for July 31. The new tentative date is August 28, though, dates are still subjected to change.
"The Single Security is a joint initiative of Fannie Mae and Freddie Mac (the Enterprises), under the direction of FHFA, to develop a single mortgage-backed security that will be issued by the Enterprises to finance fixed-rate mortgage loans backed by one- to four-unit single-family properties," according to Freddie Mac.
"The Enterprises will align key components of Fannie Mae’s mortgage-backed securities (MBS) and Freddie Mac’s Participation Certificates (PCs). The goal is to bring additional liquidity and fungibility to the “To-Be-Announced” (TBA) market and to reduce or eliminate the trading disparities that exist today between the Enterprises’ TBA securities."
A full layout of the guidelines can be access by clicking here. For more information on the delay click on the image above.
