Freddie Mac: Industry Letter Announces Updated Requirements Related to Single Security
March 5, 2019
Source: Freddie Mac
Today, we published an Industry Letter [pdf] as a follow up to the final rule the Federal Housing Finance Agency (FHFA) adopted on February 28, 2019, supporting the Single Security Initiative.
As instructed by FHFA, Freddie Mac and Fannie Mae will modify their pooling practices for fixed-rate mortgages to enhance the fungibility of the Uniform Mortgage-Backed Security™ (UMBS™).
Our Industry Letter announces changes to our requirements to the note rate to coupon spreads and a reduction in the maximum Minimum Contract Servicing Spread for mortgages serving as collateral for UMBS and Mortgage-backed Securities (MBS).
The changes will be effective for mortgages sold under the Freddie Mac fixed-rate Guarantor program and MultiLender Swap program with settlement dates on and after June 3, 2019. These changes will be reflected in the Single-Family Seller/Servicer Guide (Guide) with the publication of a Guide Bulletin in the near future.
Please review our Industry Letter [pdf] for more details.
For more Information on the Single Security Initiative
•Review the Single Security Market Adoption Playbook [pdf]
•Check out our Single Security Readiness Checklist for Seller/Servicers [pdf]
•Visit the Freddie Mac Single Security web page
•Contact your Freddie Mac representative