Securitization and Housing Finance
Securitization plays a critical role in U.S. capital markets, transforming loans and receivables into investable securities that provide funding for housing, education, and consumer credit. These markets enhance liquidity, reduce funding costs, and connect investors with borrowers in ways that fuel economic growth.
The U.S. housing market, which represents roughly 20% of GDP and 35% of all private, non-financial debt, is a vital part of this system. A stable, well-functioning housing finance framework is essential for homeownership, community investment, and long-term financial stability.
By the Numbers
Key Focus Areas
Advancing Policy and Market Practices for Securitized Products
SIFMA provides policy and market practice recommendations for securitized products from the perspective of issuers, sponsors, and liquidity providers. Our goal is to strengthen the efficiency, transparency, liquidity, and resiliency of these markets while maintaining investor confidence.
We engage with regulators and market participants on topics such as disclosure, risk retention, and market infrastructure to ensure securitization continues to serve as a reliable source of capital.
Promoting Comprehensive Housing Finance Reform
SIFMA supports long-term reforms to the U.S. housing finance system that promote market stability, protect taxpayers, and ensure broad access to mortgage credit. In response to the 2019 Treasury and HUD housing finance reports, SIFMA called for the Administration and Congress to work together on a permanent legislative solution that transitions Fannie Mae and Freddie Mac out of conservatorship while maintaining confidence in the To-Be-Announced (TBA) market, which underpins liquidity and affordability for U.S. homeowners.
Preserving Access and Liquidity in Mortgage Markets
SIFMA’s housing finance principles emphasize:
- Preserving the broad availability of the 30-year mortgage;
- Maintaining liquidity and efficiency in the TBA market, to deliver competitive mortgage rates to consumers; and
- Enhancing taxpayer protections and systemic resilience within the housing finance system.
We continue to advocate for a pragmatic, bipartisan path forward that sustains a vibrant secondary mortgage market while supporting the nation’s long-term housing needs.
The Bottom Line
Robust securitization markets and a sound housing finance system are essential to the strength of the U.S. economy. SIFMA supports policies that promote transparency, liquidity, and stability, ensuring that American families, investors, and communities continue to benefit from deep, resilient capital markets that make homeownership possible.
