Single Security Fact Sheet
In 2014, the Federal Housing Finance Agency’s (FHFA) released a proposal that would implement a single form of mortgage-backed securities (MBS) to be issued by Fannie Mae and Freddie Mac. Currently, Fannie Mae MBS and Freddie Mac MBS are unique products that trade independently of each other in distinct TBA markets. The single security will create a single form of MBS through a new Common Securitization Platform that will be consistent regardless off of the issuer and is intended to be deliverable into the same TBA contract.
The components of the single security proposal will include aligning key features, investor disclosures, and certain policies and practices that impact security performance. The goal of this initiative is to bring additional liquidity and depth to the TBA market.