FHFA Keeps Close Eye on Prepayment Speed Divergence
December 15, 2017
As the Federal Housing Finance Agency works to prepare the industry for the single security and common securitization platform, officials are keeping a close eye on consistency in prepayment speeds between Fannie Mae and Freddie Mac. The single security and CSP are on target for implementation in 2019, according to a new FHFA progress update released in December. In that report, the FHFA described in more detail the processes it has in place to minimize variance in prepayment speeds between Fannie and Freddie mortgage-backed securities that have the same coupon, maturity and issuance cohort.