Removing Barriers Blog

Comments submitted to FHFA re: UMBS Pooling Practices
Posted December 18, 2019 by CUNA Advocacy

CUNA submitted a comment letter in response to the Federal Housing Finance Agency’s Request for Input on Pooling Practices for the Uniform Mortgage-Backed Security. In the letter, CUNA indicates support for the FHFA’s proposal to require the Enterprises, Fannie Mae and Freddie Mac, to rely upon larger, multiple-lender pools. In addition to better managing prepayment risk, the multi-lender pooling requirement has the added benefit of encouraging the Enterprises to continue actively doing business with credit unions and other smaller lenders through cash commitment windows in order to include those mortgages within the multi-lender pools. In contrast, credit unions and other smaller lenders are unlikely to benefit from single-lender pools due to the smaller volume of mortgages they produce. 

FHFA has extended the deadline to comment on the RFI to January 21, 2020.